Property prices are one of the things you need to look into as a renter and buyer. But how do valuations work? Find out now at Estate Code Nigeria Limited. The way that property valuations work and how it’s computed are the following:
What are the factors that determine the price of a property?
There are many factors that influence the price of a property.
Land
Land is one of the biggest factors that determine the price of a property. The land is valued in two ways. One is the market value of the land. This is what a buyer will pay for the land. This is usually the price that a seller will get when selling the land. The other way is the building value of the land. This is the value that a buyer will pay for the land. This is usually the price that a buyer will pay for the land.
The building value of the land is determined by the type of building that is built on the land.
For example, a property with a factory building on it will have a higher building value than a property with a house on it.
So, if you want to know the building value of a piece of land, you will have to look into the type of building that is built on the land.
Location
The location of a property has a great influence on its value. If the location is good, it will fetch a higher price than if it is bad.
The Real Value of a Property
There are several factors that determine the value of a property. They include:
The physical condition of the property
The location of the property
The type of the property
The age of the property
The income that can be generated from the property
The cost of property maintenance
The property is not going to be sold on the basis of its value. The seller will sell the property based on the price at which the property can be bought by someone who is willing to buy it.
How do Valuations Work?
A real estate agent will offer the property to the seller at a price that is higher than the value of the property. The difference between the price at which the property is sold and the value of the property is called the selling commission.
A buyer’s agent will offer the property to the buyer at a price that is lower than the value of the property. The difference between the price at which the property is bought and the value of the property is called the buying commission.
In addition to the commission, a property can also be sold or bought at a discount, which is called the discount rate.