Is Property Valuation Mandatory And If So Why

Many of us often question the need for property valuation when we are buying and home and would like to find out whether it is mandatory or not. The answer is yes because apart from helping the buyer to have a clear picture about the fair market value of the property it would also be pertinent to mention here that there quite a few other revenue and statutory decisions that are taken with the help of a valuers’ report. When one takes into account all these, there is no denying the fact that property valuation is very important and also mandatory in many cases. Even when there are no buying and selling transactions, there could be the need to value a property for various reasons. For example, when it comes to valuing the estate of deceased persons, or valuing property that is quite old (even few centuries old) the role of property valuers becomes very important.

It would also be not right to restrict Melbourne Property Valuation to real estate buying and selling alone. There could many other situations where it would become extremely important. For example if you have quite a few properties and would like to value it for tax purposes then the only way forward would be to take the services of property valuers. In the same light, when government departments take over private properties for some social projects, there is a need to compensate these private citizens and entities. Here too the role of property valuer becomes extremely important. In the same light, whenever there is a need to find out more about property tax payable and to have a fix on the stamp duty payable on land deals, valuation reports become very important and vital. Hence, there are literally many situations where valuation becomes extremely important. 

Now let us try and find out what exactly happens when a property is valued. First and foremost, the valuer takes the details of the property and in most cases does a manual verification of the property. He compares the physical details and ensures that it matches with the details as is available in the property documents or deeds. He also takes care to find out more details about easements and other factors which could be detrimental to the interests of the buyers. Last but not the least there are also many subjective pieces of information that are very useful to the buyers in particular.