Importance of Property Evaluation
Sep 18, 2019 Home Trading Steps
Property evaluation may not be legally required, but to pay property taxes and capital tax calculation, wealth tax, rent, depreciation of property, etc., assessment of the property is required. While selling the property, one needs to know the exact worth of the property to price it correctly and the amount of tax that will have to be paid from selling the property. The stamp duty and registration charges are calculated over the cost of the property, and hence it is necessary to know your property’s exact worth before selling it.
When should you do the property evaluation?
As there is no law binding the property evaluation or stating that one needs to get the property evaluated, it is generally done as a precautionary measure. The homeowners usually take help from the professionals to help assess the property right, so there is no issue when paying the property tax or trying to sell it. The property can also be evaluated before writing the will, renting, putting the property up with the bank for the guarantee, auctions, etc.
Who are the property valuers?
The institution of Valuers gives a formal degree to the property valuers. Hence, anyone with a valid degree from the institute is the professional property valuer. Before these professionals can start their practice, they have to obtain a license from the state government. Unlike a property broker, a property valuer does everything on paper citing the facts. The written documents help you get a better deal with banks and investors.
Is it helpful?
A professional evaluation of the property will help you get the fair price of the property. All the numbers are on the paper, and it will give you a fair idea of how the cost of the property will increase in the future. You will also get a certificate, validating the worth of your property and the certificate is admissible in the court of law.
Are there any charges involved?
There is no standard pricing for the evaluation, and it differs from property to property. The size, location, kind of property, etc. makes for the cost for the assessment. One thing to remember is that property evaluation is tax-deductible. And the price you pay for evaluation is far too less as compared to the price of the property.
Is it a smart move?
When selling the property, having a legal document that shows the cost of the property correctly is a good thing. The buyer cannot accuse you of overpricing the property; there will be no issues when filing for the taxes and capital gains.
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