There are other purpose of valuation too, such as, a valuation for mortgages. It involves
- Special knowledge of various property characteristics.
- Imperfections of property market.
- Heterogeneity of real property
- Macro- economic and financial aspects
- Knowledge of various laws and statutes.
A person’s choice of property is more influenced by his personal and social connections such as, place of work, children’s schooling and how much he is bound with his inherited or acquired community connections. He is unlikely to move away beyond his horizon of known world because of an advantage price. His market is therefore largely local in character; again absence of an organized information system gives insufficient information on suitable properties beyond a person’s community enclave.
The demand of prominent sites in national or provincial capitals is mainly guided by investment motive. These sites are appropriate locations to discharge high administrative or business functions.
With growth of a nation there is an ever-increasing demand for these sites and therefore they offer lucrative investment channels with high capital gains prospect. The large institutional investors are indifferent between locations of site in these centers as they are solely guided by financial gains motive and they make large capital outlay in these locations .
When we value a property, we must be being marketed. So the abstract – the “rights” and the physical entity- the “land and building” together form the proprietary unit and what is transferred is a bundle of rights.
A valuer therefore has to consider not only the property itself but also the circumstance that may increase or decrease the ability or willingness of a person who may need it.
The valuer judges the ability and willingness of a buyer from the past transactions by examining the subject – matters of the valuations, the macro-economic circumstances prevailing at the time of transactions and other circumstance of the person paying for it. From the examination of these points he draws a comparison of any other point of time and the macro-economic and other circumstance at this different point of time and thereby draws his inference.
Sometimes the most appropriate kind of examination are different for those, as well as for different qualities, significance personal guidance from an knowledgeable professional is often the only way to really determine what you need.Virtually all Chartered Surveyors will change and bring out a person developing examination to fit your own needs. A unique support or an extra to a common study structure should allow all the specifications of a customer to be resolved.
There are a number of other types of developing evaluation possible, each found on all backlinks to the remaining.To choose the most appropriate support, we are, as above mentioned, of the viewpoint that the most appropriate approach is approach the Chartered Surveyor who knows the area well and can talk about your own specifications.
Please remember that Chartered Surveyors are often on-site and thereforeuncontactable even with cell cellular phones. If you phone and get an answerphone, please keep a concept, or e-mail the surveyor, and he or she really will call you as soon as is possible.