Property valuation in Dubai, real estate valuation, or real estate appraisals is the method of determining value for property. As property prices are constantly fluctuating, it is important to be able to give an accurate assessment of its worth. Real estate appraisals are often required when purchasing a new property, during the ownership process or as a seller’s response to the deficiency payment in a transaction.
Appraisal is often considered the most critical step in real estate transactions. Real estate appraisals are performed by professionals who are skilled in this field of study. Real Estate Appraisers is licensed in most states before they can conduct any real estate appraisal for their clients. Appraisals are performed for:
- mortgage lenders
- financial institutions
- private sellers
- sometimes even government agencies
Property valuation, real estate valuation, or property value is generally an estimate of the fair market value of a property based on many factors including:
- the condition
- The Valuer: In cases where there is a dispute between two buyers regarding the market value of a property, the deal must be re-examined by a Valuer. One advantage of hiring a professional Appraiser and a snagging company is that he/she is qualified, professional, knowledgeable, and experienced to assist the buyer in establishing the appropriate selling price.
- The Appraiser: Generally, in most states, the Appraiser is required to get the assistance of another professional such as a Surveyor or Engineer in order to obtain more accurate property valuation information. These professionals are qualified to appraise any type of:
- vacant lot or other structure
They are required to be licensed by the appropriate state government agency. The Appraisers can also perform some repairs or renovations if they are qualified.
In cases where there are disagreements regarding the selling price of a real property, the Appraiser may have to use his/her knowledge and experience in order to reach a reasonable conclusion as to what the reasonable selling price is. This conclusion is arrived at after considering all relevant circumstances surrounding the sale of the properties, including the:
- other expenditures
Another important factor considered by the Appraiser is whether or not comparable properties in the same area were sold at a similar price. It is common practice among real estate Appraisers to use a mathematical formula known as the Correlated Time and Price Analysis, or the CTRPA. This formula is widely used by Appraisers to arrive at the appropriate selling price of comparable properties.