House evaluation is one of the most important issues that need to be taken into consideration when need to buy or sell a house. The nature and climate of real estate industry are critical factors that make the process of house valuation important because prices are always fluctuating. Always ensure you hire a professional and licensed company to do the valuation.
The majority of the agent’s value house as per the current trends in the market but is just an opinion in their place. But chartered surveyors have the ability to give you correct house valuation.
Reasons for house valuation
To Obtain a Loan
It is hard to obtain a loan if you do not know the valuation of your house. Though few buyers can cash in the whole amount for the house, valuation is just but necessary. The purpose of evaluating your house it will help you determine the market value of the home. Hence, the mortgage approval will be based on the market price.
To Protect the Lender
No lender is willing to deal with a house that has not been correctly valued. Therefore, valuation of the house is necessary and has to be determined before the lender approves the loan. The information derived from the valuation of the house is of great importance to the lender. He/she will study every detail before making a decision. So, you need to be well aware of the value of the property.
Determine Selling Price
Your property will have a valuable price tag if you have valued it correctly. But the fact is, the selling price will be determined by the willingness of the buyer to pay the mentioned amount. At times, the supply might outweigh the demand meaning the market is saturated with a variety of property to choose from. In such kind of climate, if a property is over-valued, chances are it can damage the selling potential. For sellers, correct pricing is important because it will result in a successful sale.
If a house is undervalued, you might guarantee a quick sale but be ready to feel the pinch of the lost money. On the other hand, an evaluation that is extremely high will result to a property staying in the market for long and in the end; the seller will be frustrated and might end up accepting low prices for the same property. Ensure you have valued your house correctly and if need be, better use the services of an expert.