Real estate property appraisal helps an organization or an individual know the value of the property in question. The fair price of land , a house or a building can be estimated, thanks to the evaluation of a property.
There are many reasons why a property is appraised. Some of them are mentioned below:
- Buying or Selling Real Estate: The valuation of real estate is important when buying or selling the property. Even in the context of a rental, the valuation of the property plays an important role. The rent of a property is generally between 6 and 10% of the estimated price of this property.
- Mortgage real estate: The valuation of real estate is important when a buyer wishes to obtain a loan. It is also carried out in case a loan for repair work is necessary.
- For Taxation Purposes: Property valuation is important when calculating property tax. Taxes include wealth tax, municipal tax, land tax, vacant land tax, land rent tax, etc., which an individual has to pay to various government departments.
- For the transfer of property: in the event that a person wishes to transfer his property, he will have to estimate the real value of it. Stamp duty is calculated on the value of the property.
- Compulsory acquisition: The valuation of a property is also essential in the event that a person or an organization declares bankruptcy and a compulsory acquisition or auction of the property is carried out.