Importance of Property Valuations for Nigerians.

What is a property valuation?

A property valuation is an assessment of your property’s value, based on the location, condition and multiple other factors. Your valuation will be carried out in person by a professional Estate surveyor and Valuer who will take notes and photographs, and then send you a valuation report.

Who is an Estate Surveyor and Valuer?

The estate surveyor and valuer is a professional trained in the art and science of estate management to direct and supervise an interest in landed properties with the sole aim of obtaining optimum returns for the owners of such properties.

A surveyor will carry out your valuation, as they’ll consider elements like storage, age, size, wear and tear, and room layout in approximating an appropriate figure. They’ll also look at similar properties in the area and consider what the market is like.

Property valuation helps an organization or an individual know the worth of the property. The fair price of land, a factory, or a building can be estimated through the valuation of a property. Property valuation of includes the estimation of a brand, copyright, intellectual property-related rights, goodwill and company performance related to marketing and promotions.

There are numerous reasons why a property is being valued. Some of them are mentioned below:

• Buying or selling of property: Valuation of property is important when buying or selling property. Even if an individual wishes to rent his property, property valuation becomes important. The rent of a property is usually 6–10% of the estimated price of the property.
• To mortgage a property: The valuation of property is important when a buyer wishes to seek a loan against the security of property valuation is also done in case a loan for the construction of a building is required.
• For taxation purposes: Valuation of property is important when calculating the tax on property. Taxes include wealth tax, municipal tax, property tax, vacant land tax, ground rent tax, etc, which an individual has to pay to various government departments.
• For transfer of property: If a person wishes to transfer his property, he will need to estimate the property’s value. The stamp duty is calculated on the basis of the worth of the property.
• Compulsory Acquisition: In case an individual or an organization declares itself bankrupt and a compulsory acquisition or auctioning of the property is done, in such case the valuation of a property is essential.

What’s the difference between a surveyor’s valuation and an estate agent’s?

If you’re looking for a property valuation in order to know how to price your own property to sell, you might think of asking for an estate agent’s valuation. These are free when an estate agent comes around to view your home in the hope you might use their services to sell the property.

Estate agent’s valuations are an option, but it’s important to remember that a surveyor’s valuation will not only come from someone with professional training in considering structure, quality and the cost of improving properties, but it will also be unbiased. An estate agent’s suggested valuation can be inflated in the hope of you choosing them to sell your property, whilst a surveyor’s valuation is based on the facts of the property and the location without any external influences.

 

You can visit the Directory of the Nigerian Institution of Estate Surveyors and Valuers to get a verified surveyor to value your property properly.