A Valuation Report conducted by certified valuers is an imperative need prior to real estate sales.
The Report comprises recognised high-level valuation principles and standards supported by the International Valuation Standards Council. Furthermore, the professional activity of a Real Estate Valuer in Cyprus is supported through the implementation of the Code of Ethics and the Global Professional and Ethical Standards, and it is also safeguarded through an established system of regulations. This ensures the supervision of the members of the Royal Institution of Chartered Surveyors (RICS) in top global valuation bodies, in accordance with the International Valuation Standards.
Indicatively, it should be mentioned that a Valuation Report includes, among others, the following:
– Legal characteristics
– Development potential based on planning regulations implemented by Local Plans
– Market research – comparison of the real estate under valuation with other similar properties that have recently been sold or are for sale by private sellers, property management companies and financial institutions
– Local market analysis and current trends of investors, land developers and residence buyers
– Highest and best use of the property
– Real estate marketability
– Advantages and disadvantages of the property
– Capital appreciation prospects
It is common for those interested in purchasing a property to ask for all the available properties through real estate agents or on different websites before they decide which property to purchase.
In this way, they have a comprehensive view of the market and will be in the position to identify the best options and the properties with reasonable prices.
Therefore, if the sale price of a property is determined based on the general view and dynamics of the market, a willing seller will manage to attract more buyers.
A “competition” among the interested buyers may also be created. This may lead to more offers with better terms.
Furthermore, a valuation report may be given to a potential buyer or used to justify the requested price that appears in the real estate advertisement.
An expert’s valuation will prove to the buyers that a third party has expressed their independent professional opinion with regard to the real estate, based on the market condition.
The price may also be justified with reference to a professional valuation report which analytically states that all the other similar properties in the area sold for (almost) the same price.
In conclusion, a real estate valuation report always proves that the seller has conducted the required research and strictly values the entire procedure.
Demos Georgiou MRICS
Contact us for a professional and dependent assessment of your property’s market value.