Just like any other purchase involving a huge price, buying a property is also a decision that a majority of population doesn’t take every now and then. Such a transaction involves a whole gamut of care, compliances, and caution to exercise. So it is a given fact that due consideration be allotted to the biggest financial transaction most people will ever be subject to. It is therefore must to guarantee that the property that you have zeroed in on is safe to be purchased.
To begin with, works such as plumbing, electrical, for the fan, heater and required construction for renovations should be taken into consideration when buying any property. The property that you want to buy should scrupulously be scanned prior to becoming a party to any unconditional agreement; this also includes making sure gaining all the building consents. The seller should be pinged to fix the shortcomings and repairs before you begin absorbing the responsibility for incurring any expenses thereof.
There are some time tested ways to examine a property well before you get hooked into an unfavorable purchase. According to these ways, if you find any discrepancy, it is advisable to critically include these conditions in your Agreement for Sale and Purchase. This is meant to guarantee that you are not hurdled to purchase before being absolutely contented with the state of the property.
It is a must to consider these steps before initiating any agreement to transact for buying a property:
First of all an engineers’ scrutiny report is to be availed. Such a report is a versatile statement primarily meant to describe a property’s structural reliability and the superiority of construction. Such a report can also give a fair idea regarding allied building elements like wiring, stating the condition of the central moisture levels whether spongy or not, plumbing and roofing too.
Secondly, a land information memorandum statement from the concerned local council is to be availed. Such a report for the property is prepared considering the records at the local council. This report details the state of affairs of all the required consents whether given for any building work or not. Information on various other useful facets like location of below the ground services, an airborne snap of the property, and information relating to historical hazards that may have influenced the property in its history can be received by LIM report. Past problems if any created from flooding or subsidence can also be learned about.
Thirdly, entrust a lawyer to scout for title to the property. A lawyer working on your behalf will scout for the title and counsel on any issues that you need to address beforehand. Aspects such as restrictions and any obstacles or encumbrances on the title, contents of rights i.e. easements or shared services and rights of way for access can be well dealt by your lawyer.
Fourthly, get the property valuation report. It is a must that you base your purchase offer conditional on first availing an acceptable market valuation report. It is always safer to realize the actual value of the product you are going to buy prior to get compelled to transact by a contractual direction. A registered property valuer is the best resource to reach for to prepare a valuation report. Such a valuer would also employ the comparative property transaction values of your nearby vicinity properties to discover a fair market value. In case you are opting to borrow funds for the buy deal, the lender will usually need a valuation report as a collateral supporting evidence to release finance.
Put in plain and simple words property valuation is nothing but calculating the fair market value of the property. Many of us might ask the question why such a report is required in the first place when there is a clear indication of the fair value by the market itself. The answer to this is quite simple. While the market value is just indicative in nature, it does not have any legal sanction behind it and there are no efforts to dig deep and find out the value of the property concerned. This is exactly the role of property valuers. They use many tools and techniques to find out more about the fair market value of the property and nine out of ten times their estimates are near accurate.
This is the main reason why even banks, financial institutions, government departments and others consider valuation reports from quality professionals much more than a piece of document. In fact many government departments use these valuation reports as the basic premise for calculating various payables. This is especially true in case of compensation valuation. Compensation valuations become payable to persons whose properties are taken over by government departments for constructing various socially relevant projects. Hence when it comes to deciding the amount of compensation, more often than not these valuation reports are taken as the benchmark.
Banks and financial institutions almost totally depend on property valuation reports for determining the amount of loan that a customer is eligible for mortgaging his property. Hence whenever a customer applies for a bank loan the first thing banks do is to raise a property valuation report. Though there could be some quarters who might talk about property valuation reports being doctored by banks, this is more of a figment of imagination than anything else. This is because valuers are professionals and they would never like to jeopardize their reputation and careers by doctoring valuation reports for a few dollars.
It would also be pertinent to mention here that apart from the quantitative and figurative elements of information in a valuation report, there are also quite a few qualitative reports that are very useful to the buyers in particular. For example the mention about infrastructure development, the availability or absence of various amenities and facilities are a few things that could be of immense help to buyers and also other stakeholders. Therefore it would be safe to conclude that there are quite a few important pieces of information in good property valuers’ report.
Buying and selling a real estate property is not easy because there are a number of processes and steps that have to be followed. Since most of the buyers are sellers are first timers, it is quite normal that their knowledge levels will be quite low. Hence they would always be happier taking professional help whenever there is a need to buy or sell a real estate property. A real estate property transaction is said to be complete only when the ownership of the same gets transferred from the seller to the buyer. The ownership transfer should get reflected in the government revenue records. For this to happen there are many processes to be gone through and property valuation is also considered to be very special and significant.
Let us try and find out some common reasons why property valuation is considered so very special and important. The main purpose of any property valuation report is to ensure that both the buyer and the seller get clear information about the fair market value of the property. This helps the stakeholders take a clear decision based on facts emanating from professionals rather than going by hearsay. There is no doubt that the market is a reasonably good indicator of the value of a property. However, it does not have legal teeth to it which these valuation reports provide. In case of any disputes these reports can be used as a legally enforceable document.
Whenever there is a need to calculate property tax and stamp duty amounts, it is quite normal to use the valuation reports as the basis for such calculations. Further, there are a number of other information which exactly are not objective or figurative in nature. For example a good valuation report also makes a mention about the locality, its development, the standard of people living in it and other such details. It also delves a bit deep into the quality of infrastructure available, the various types of amenities and facilities available and other such details. There are quite a few valuers who also take the trouble of mentioning the rough fair market value of similar properties in the neighborhood.
Hence, at the end of the day there is no denying the fact that property valuation is as important as identifying the fight real estate agent or identifying the right bank for mortgage loans. Without this report the entire process of property settlement will not be complete.
When it comes to estimating the fair market value of properties, there are quite a few options available. There are also many factors that could also impact the value of a property. Hence instead of customers trying to break their heads over head, it is always prudent to pass on the headache to someone who are not only experts, but also have experience and qualifications to do a better job of it. Valuation of properties has many steps to it and determining the value is perhaps the first starting point. The determination is usually done quite easily by going through some time tested methods and processes.
First and foremost when a customer raises a request for property valuation by expert valuers Melbourne, the first thing that is done is to request the customer for copies of all the property documents. This helps the valuer to have some basic inputs regarding the locality of the property, the age of the property, the size of the property and so on. Once these basic figures are available with the valuer, the next job is to personally visit the property and take the matter forward. This might be necessary for many reasons. While measuring the property and ensuring that it matches with the property documents is one reason, there are other important reasons too that should not be lost sight of.
Many prime properties located in the best of locations could have something negative hidden behind it. For example they could have easements that could hamper the rightful ownership of the property in question. Easements are nothing but some areas of the property that could have been earmarked for common usage. Passageways and walkways are simple examples of easements that could bring down the value of the property by quite a few thousands of dollars. Hence, the onus is on the valuer to ensure that such nasty surprises are not around as far these properties are concerned.
Property valuers should also understand that there cannot be a single brush with which all property valuation cases can be painted. There could be complicated backdated, retrospective valuations and compensation valuations where the conventional wisdom might not work. Further, customers might also demand that different methods of valuation be used which could be to their advantage without infringing or breaking any laws of the land. Hence, it is important for valuers to master the basics and then move forward as far as effective valuation is concerned.
Though there is no doubt that a majority of property valuation continues to be done manually and so when we talk about automating the front of property valuation quite a few eyebrows are bound to rise. However, whether we may agree or not there is no do denying the fact that online valuation is slowly gaining in popularity as more number of people are finding out the benefits associated with online property valuation. Though it might be still in its nascent stage it will not be long before it becomes more of a norm rather than an exception. This is because there are some obvious advantages associated with online valuation that are quite obvious to be ignored.
The biggest advantage associated with online valuation is that can it can help in reducing time for customers. Most of the customers are into jobs or doing small businesses. Hence time is not on their side and most of them are literally racing against time. Under such situations it would not be a bad idea if these customers are offered online valuation. It will go a long way in helping them to stop making repeated visits to the valuation companies in their bid to get the valuation reports on time.
Another big advantage with online valuation is that it adds a lot to the comfort levels of customers. There is nothing more cozy than uploading documents online instead of making trips to the valuation companies negotiating thick traffic and spending lot of valuable time. From the customers point of view too there is lot of benefits which are again too obvious to be ignored. For example online valuation removes the need for manually receiving the documents from the customers, filing it and other performing other such clerical jobs. Since the documents will be available in the digital format, it makes access of the same easy. The human resources that is saved by such online valuation can be put to better use by diverting the same to more efficient and productive uses.
Apart from the above online valuation also helps valuation companies to build better reputation and goodwill. This will certainly rub off to newer prospects and it will be only a matter of time before the floodgates open as far as fresh customers are concerned. However, this would certainly call for making all arrangements to automate the backend. Automating front end without taking care of the back office would be akin to putting the cart before the horse.
Achieving high levels of success is not becoming any easier. This is because of increased levels of competition in this field. Further the market in general is also going through ups and downs more frequently than ever before. This is also causing apprehensions in the minds of customers, especially those who look at real estate as a source of investment. Over the next few lines let us try and look at some ways and means by which we can effectively take on competition and move our business from one level of success to another.
As a real estate valuer it is important for us to understand the fact that the buying habits of customers keep on changing. It is applicable for all products and services including real estate valuation. Time is a big challenge for most retail customers of today. Either they are tied up to their jobs or their businesses. Hence, they hardly find any time for other activities. Under such circumstances, it would not be a bad idea to offer them online valuations. This will make their life much easier and save them to trouble of repeated visits to the valuers’ office in pursuit of the reports and returns.
While offering online valuation might look easy on paper, when it comes to actual implementation on the ground it is quite difficult. This is because of many reasons. Just automating the front end and capturing details about the customer and the properties concerned is not enough. There is also the need to ensure that the back end is also taken care of. Automation of backend is important or else it will be a case of placing the cart before the horse.
Apart from offering value additions to customers, there is also the need to look at other ways and means to network more efficiently. Valuation business at the end of the day is a service. So, the more numbers of prospects you are able to reach out to, the better will be your business opportunities. Towards this objective it is very important to understand the importance of social media sites like Facebook, Twitter, Linkedin and so on. Once you make your presence quite aggressively in these networking sites, it will only be a matter of time before you are able to rope in more number of customers. Taking memberships in chambers of commerce can also help your cause in more ways than one.
Running a valuation business is not as easy as it was a few decades or even a few years ago. There have been changes in the way valuation business is being done and also the way customers perceive this business. It is therefore important for valuers to find out ways and means by which they can move their business from one level of success to another. It might call for thinking out of the box, having a relook at the entire business model or even trying out new marketing methods and techniques just to name a few. However, at the end of the day, the final objective must be to add more value to customers. Towards this objective, the time tested methods of customer focus, hard work, transparency, honesty and good business ethics still continue to be extremely relevant.
Now coming to specifics that can help in tackling competition, the need of the hour is to find out ways and means by which valuers can improve their networking capability and relationship building capacity. There are many ways and means by which this can be done. The internet without any doubt is the best place where networks can be efficiently built and new relationships nurtured. However, this process will not happen overnight but will take time and effort.
While having a website of your own is a good way to move forward, as a valuer one should ensure that there is enough traffic flowing into the website. This might call for taking the help of professionals. Further it would also not be a bad idea to go in for memberships with like minded institutions or organizations. Taking memberships in reputed chambers of commerce is certainly a wonderful way by which valuers can reach out to more number of prospects including some good banks and financial institutions. Offering online valuation is another way by which customers can move from one level of success to another. This is because online valuation is certainly a good value proposition for customers who are hard pressed for time. While being competitive on the price front is also becoming very important, as a valuation service provider you should know where to draw the line between price-effectiveness and quality of service. Last but not the least, improving turnaround times is also something that should always be kept in mind.