Why Is Appraisal Of Property Needed?
Property appraisal is often conducted for various reasons. It is a necessity for the majority of countries and also a requirement either for placing a property for sale in Lebanon
or when purchasing a real estate. An appraisal provides an estimate of the value of the property under consideration but appraising a property is essential for many other reasons.
As noted, the main reason for having a property appraisal is to obtain an estimate of the value of the property. House prices in general and Lebanon property prices
in particular differ one from the other even if the properties are located in the same area. Each house is unique commanding a unique price which will depend on the architecture, number of rooms and living space and other additional features that may be unique to that property. Determining the specific characteristic of the property is what will provide it with an intrinsic value which will differentiate it from any other property.
When appraising a property, what is sought is the market value. Real estate agents in Lebanon can provide a general quote which often reflects the estimated amount sought by the owner of the property but only through property appraisal services in Lebanon can an adequate evaluation and further insight be obtained especially from the part of the buyer. Such appraisal services have qualified individuals many of which are certified as valuation surveyors. They often conduct valuation of a property for sale in Lebanon based on the market value and the highest and best use of the property.
Other reasons when appraisal of a property is necessary are when seeking to obtain a mortgage loan, for taxation, or when making a divorce settlement. In most cases, the property surveyor will write a report which is used by the parties concerned to obtain an estimate of the value of the property.
In general, property appraisal services in Lebanon when conducting a property appraisal can determine different types of value according to the definition of value:
· Market value — it is considered the value that the property can be exchange in the market depending on the forces of supply and demand of similar properties and taking into consideration the particularities of the property. Lebanon property prices will vary in market value depending on the area, the size, the architecture, and unique features of the property
· Value – in – use — the value in use of a property is its net present value (NPV) and represents the value of cash flow that the property can generate when used in a specific manner. For example; the value that the real estate can generate if used as a property for rent in Lebanon.
· Insurable value— the value of the property that can be covered by an insurance company is its insurable value
· Liquidation value — the value of the property in case of liquidation due to bankrupcy or forced liquidation when an owner is forced to sell the property for one reason or another
A property surveyor can often make many different recommendations when appraising a real estate. It is possible to sometimes increase the value of a property through refurbishment or other home improvements. By having the advice of a property surveyor, a home owner putting a property for sale in Lebanon may be able to make some modifications so that he/she can obtain a higher market price when the property is placed on the market. Similarly, with a report written by a property surveyor, the property owner will best advertise the real estate with additional clout being much more convincing to would be buyer of the true intrinsic value and therefore will negotiate with a stronger position for the price sought. Buyers also that seek property appraisal services in Lebanon can be certain of getting value for money or be in a much better negotiating position.
Whether buying or selling a house, having the report from a property surveyor has many advantages. It offers the possibility of making comparison of Lebanon house prices which command the same value in the market. It provides insight as to the real value of the property therefore giving the buyer or the seller the possibility to negotiate the best value for money; it can serve for insurance purposes as well as for seeking mortgage. It is also an estimate for the future value of the property and whether it is a good investment. Lebanon property prices will vary depending on the economic and the market conditions; property appraisal services in Lebanon have qualified individuals who are knowledgeable of the market conditions and can therefore provide the best estimate as to the value of the property.
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