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Property valuation is not as straight forward as you may think. A valuation is a complex issue where many factors have to be taken into account. Independent valuations can only be performed by a chartered surveyor. Although estate agents can provide you with a guide as to what somebody may pay for your property they cannot be relied on to provide objective and accurate valuations. It is possible to for non-professionals to do their own valuations. The three theoretical approaches to determining the value of a house are: 1. The cost approach 2. The comparable sales method 3. Income approach The cost approach The cost approach calculates the value by adding the land value and the depreciated value of any improvements. It is considered reliable when used on newer structures, but tends to be less reliable for older properties. The comparable sales method The comparable sales method estimates the value of a house by comparing it to prices of similar property sold in similar locations within a recent period of time. This is useful when there is good evidence of previous sales and is the most prevalent method in the residential property market. It reflects actual market prices, but neglects whether the property investment will be profitable or not. This is especially so for residential properties. By appraising and revaluing a property you can know the equity gain or loss from the original price and the current value of the property. A lot of people value the building and land cost and use that to value a property. This method is called the cost approach. However the most commonly used is the market data approach. In this method surrounding properties that are similar are compared and through this the value is determined. To show the investment worthiness of a property, investors prefer the investment or income approach which uses the cost paid for the property as a ratio of the income from that property to show the worthiness. Income Approach The income approach is when the present worth of the property is estimated on the grounds of projected future net income, thereby focussing on the profitability of a property investment. However, it neglects its worth in comparison to the overall market. There is no perfect method of assessing the value of property and in the end it is supply and demand which determine the actual price of a house. The above article was written by Richard Tuck from the Online Estate Agent Turtle Homes. Buyers today look for well fitted bathroom with all the modern equipments having enough space to roam around. One of the greatest assets to your home will be a whirlpool bath or a spa, even if you make use of a shower. Even showers are becoming an essential part of modern bathrooms. However, at the present moment, it is the steam showers and shower heads that are gaining popularity. Bathroom and kitchen are the two most important things when it comes to evaluating a home. So, keeping them updated would only increase your home's market value. Experience a new way to sell your house online and find a property online in the UK. We are an ONLINE estate agent and we don't have expensive overheads such as high street rents and rates. All you as the vendor need to do is to show prospective purchasers around your property and let us take care of everything else. John Ola is experienced and looking for an estate agent across Epsom, Surrey, Ashtead, Leatherhead, Ewell and Barnstead, and writes articles on Estate Agent Surrey, Estate Agent Epsom, Estate Agent UK and Estate Agent Leatherhead, Estate Agent Barnstead, Estate Agent Ewell, Estate Agent Flats, Estate Agent Houses, Lettings Agents, Sales Agents, Estate Agent management, Investment Properties, Overseas Properties, Property Valuation.
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