Table of contents
Executive Summary………………………………………………………….3
Introduction ………………………………………………………………….3
Land and Title………………………………………………………………..4
Location………………………………………………………………………5
Site Description and Services…………………………………………………6
Town Planning………………………………………………………………..7
Land and Improvements to Land……………………………………………..8
Improvements…………………………………………………………………9
Description ……………………………………………………………………10
Conclusion…………………………………………………………………….12
References…………………………………………………………………….13
Executive summary
Economically, property value takes into consideration various parameters. The first one is comparing it with other existing homes that were sold or bought. The next criteria entail giving it an appraisal that is to be based on location, structural condition, and amenities as well as recent sales of the similar location properties. In so doing, it means that it is important for a real estate agent to ensure that he or she has the ability of providing accurate property valuation that is ultimately comparable to the value of the surrounding homes that were bought or sold. The reason for that is because it is the one that has the potential of presenting comparative market analysis to both the buyer and the seller.
On the other hand, the comparative market report to be displayed need to take into consideration pending listings, active listings, off market information, sold listing, as well as real estate agents which in return can assist in determining the price at which the property can be sold at. In order to make it more competitive, it is important as a real estate agent to ensure that the size of the property have been taken into consideration. The reason for that is because such factors are the use that can be used as the main basis for coming into a reasonable profitable selling amount.
Introduction
From the information collected regarding the 181 Humphries road, St John’s Park 2176, the truth is that land valuation or property valuation is that from the sampling exercise conducted, the main concern entailed caring about the probability proportional to size and frequency of the samples to be collected. Regardless of the value that the property can be valued at, the truth is that it is vital for a person to ensure that he or she has ended up understanding the some of the subjective processes that exits in the process of its protocol variables and assumptions (AbduL, 2002, p.334). In so doing, it implies that the final value that a person arrives at regarding this property will ultimately be based on the property appraisal approaches to be used by each person. This then implies that as the property management team, it is vital to ensure that the valuation income is something that ought to be the perspectives of the logical appraiser at the end of the day. This is important because it is the one that has the ability making people to understand its valuation approaches taking into consideration the area that it situated (Millington, 2013 p 93).
According to the modern property valuation approaches, the truth is that the general estimation of the 181 Humphries road, St John’s park 2176 property fair value is something that has been realized to have the potential of fascinating the majority of individuals who desires to own such houses. From the existing property valuation literature, the truth is that the general valuation of residential properties is something that is perceived to one of the ultimate means of building ultimate gains which are can be represented in liquid assets. On the same note, it is the same protocol that is perceived to have the potential of necessitating the continued utilization of the approaches that are used in property valuation (ISAAC & O'LEARY, 2012 p. 55).
During the general valuation of this property, it is important for the valuer to ensure that he or she has provided expert estimate regarding it. This will have to take into consideration the some of the separate influences that aid in creating, maintaining, or diminishing its value. Since this is what will keep on impacting the value and the marketability of this property, it is important to ensure that re-assessment have been taken incase such risks exists. Research also indicates that it is important to ensure that its market and specific factors have been taken into consideration (Valuation principles and practice, 2007 p.138).
In the process of stating the requirements of the client who wishes to purchase such a property, it is should be realized it is possible to reduce all the time and expenses incurred during its evaluation process. Therefore, it is vital for the valuer to ensure that he or she detailed information, for instance, the nature of such a property, its valuation date, some of the additional matters that might have to be addressed, its valuation interest, the parties or party that the property valuation will be addressed to, and so on (Valuation principles and practice, 2007 p. 137).
Land and title
On the other hand, it implies that is important for the valuation appraiser of such a property to ensure that he or she has the ability of understanding the expenses to be incurred in the process of acquiring the title of that property through using the existing income approach, cost approach, and sales comparison approach. The reason for that is because it is the same approaches that have the ability of reflecting the manner in which other existing valuation approaches has the ability of generating the existing property valuation approaches with regard to land and title acquisition From the modern property valuation information collected, it has been realized that the majority of those who desire to buy such properties ultimately desire to approximate their investment value through using some of the existing property valuation parameters that are ultimately based on the value that land could have been valued at. This is what the potential investor will have to pay taking into account the effect of inflation rates (Michael, 2016 p. 86). Equally, the value at which the property will be sold at will have to be based on the expenses to be incurred during the acquisition of the property title.
During the provision of the title of the property, it is vital for the valuer to ensure that he or she has commented upon it. Things like the plan number, folio identifier, and site survey information ought to be provided in case a current title is not available. It, therefore, means that it is important for the property to be subjected to acceptable title search. The associated party or parties should also ensure that they have provided details regarding all the matters that have the likelihood of affecting its title (Valuation principles and practice, 2007 p.138).
Location
In order to be in the position of valuing such a property, it is important for the property appraiser to ensure that he or she has the ability of understanding the dynamics of the modern business world. The reason for that is because the valuation of such a property is science and an art procedure. As one of the investment science, the whole procedure will have to take into account the need of formulating some of the mechanisms that are used in reflecting the location expenses of such a property (Valuation principles and practice, 2007 p. 142)
In the process of understanding the value it will be sold at taking into account its location, the valuation of such a property will ultimately take into account the location assumptions that are used for the purpose of generating equitable income. This to imply that the approach that can be used valuing this property needs to take into consideration what the buyer accepts to pay within such a locality. The reason for that is because it is the one that has the ability of enabling the181 Humphries road, St John’s park 2176 property appraiser to have the ability of determining the costs of such a transaction (Wyatt, 2007 p.112). The details regarding the location of this property should have to address accessibility and the availability of the existing transport facilities. Other than explaining the nature of the surrounding land utilization or development, it is vital for the valuer of this property to ensure that he or she has documented the its proximity to retail facilities, educational facilities, and contamination from other surrounding areas, recreational facilities, as well as other major cities (Valuation principles and practice, 2007 p.142).
Site description and services
During the evaluation of such a property, there are various approaches that can be used for the purpose of understanding the mechanisms that can be used for the purpose of reflecting the true value of such a property. As much as the valuation of this property is concerned, the truth is that the appraiser of this property has the responsibility of ensuring that the reduction expenses of this method is the one that has the potential of reducing its valuation expenses. The reason for that is because it has been realized that property valuation expenses do not have the ability of mirroring its income-associated with regard to its location. This will have to take into account the cost of the site as well as the expenses that were incurred during its construction (Millington, 2013 p 93). It is, therefore, important for the property appraiser to ensure that he or she has ended up substantiating some of the property estimating variables takes into account where such a property is located and the interest it is projected to generate after being sold. The reason for that is because it is the same factors that are usually used in calculating the true value of a residential property (Michael, 2016 p. 86).
Accordingly, during the general valuation of the same property, it is important for appraiser to ensure that he or she has taken into consideration the space occupied by such a property. This in return is one of the factors that can aid in reflecting the amount to be added to the in the valuation cost. Conversely, one a residential property like that has been renovated, it means that it vital to ensure that the expenses incurred has been incorporated during its evaluation process. It is that improvement that has been realized to have the ability of improving the manner in which potential buyer can be enticed into the potential of understanding such improvements made with respect to the property comparison method arrived at (Wyatt, 2007 p.125).
Town planning
It should be understood that the value of such a property ought to be based on the nature of its surrounding. It, therefore, means that during its evaluation process, the whole protocol that has the ability of ignoring the value of the property just in terms of assets and business planning process. It is, therefore, important for the property appraiser to ensure that he or she has ended up substantiating some of the property estimating variables regarding the manner in which the locality is perceived to economically grow. The reason for that is because it is the same factors that are usually used in calculating the true value of a residential property. Consequently, during the general valuation of the same property, it is important for the property appraiser to ensure that he or she has taken into consideration the valuation amount that was arrived at by the existing residential houses just within that town (Robert, 2004 p.13). This in return is one of the factors that can assist the appraiser of such a property to reflect the amount to be added to the in the valuation cost regarding the expenses that the aid in reflecting the improvement of the same locality
On the contrary, once a residential property like the 181 Humphries road, St John’s Park 2176 has been renovated, it means that it vital to ensure that the expenses incurred have been incorporated during its evaluation process. It s such property valuation improvement that has been noted to have the ability of improving the way in which potential buyer can understand the importance of purchasing as a house after comparing it with the recently sold ones; the comparable approach (Millington, 2013 p 89). It is recommended for the valuer to ensure that he or she has made independent investigation during the search for zoning certificate. Moreover, during the search for certificate of compliance, it is important for the intending mortgagees to ensure that they have had the ability of determining as well as advising the extent of all the associated documents needed (Valuation principles and practice, 2007 p.143).
Land and improvement to land
In the process of efficiently utilizing property valuation protocol, it should be understood that recent sales of unoccupied property have been used as the basis making the comparison. Taking into consideration the evaluation value of the recently existing properties, the truth is that as the property continues to become older, its appreciation land rate also increases thus making it much difficulty to quantify it (Valuation principles and practice, 2007 p.144). In the process of valuing such a property, the property appraiser will have to take into account the importance of estimating the amount such properties ought to be sold at taking into account its comparative approaches (Millington, 2013 p. 90). The reason for that is because in the process of estimating the general land cost of such a property, the expenses incurred during its construction can be computed easily. This will also take into account its land value. In the process of estimating its accumulated land value, depreciation amount of it will ultimately be subjected to asset budgeting before subtracting it from the perceived real value (UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME, 2008 p. 36). Thus, the liquidation land value of such a property will have to be based on what the potential buyer has to pay,
Taking into account the valuation value of this property, it implies that the expenses to be uncured during the land evaluation process will ultimately rely on the expenses incurred during its construction. On the other hand, in the process of estimating its obsolescence and depreciation rate, it is important to take into account the manner in which the buyer perceives the house to be. Ideally, the replacement cost is something that has been perceived to be one of the means that are used to increase the economy of scale of property appraisers (Tim, 2013 p.3).
Improvements
Taking into consideration the income approach to be used in valuing this property, the truth is that its income generating propensity is the one that has the potential of reducing its market worth. The reason for that is because it the one that can aid in determining the amount of income that that property is projected to produce. Such a method is important because it can assist the appraiser of this property to have the ability of the comparable market value of such a property. Within this context, discounted cash flow and direct capitalization method are some of the means that should be used to value the true value of such a property (BAH et al 2018 p. 138).
It should be understood that the importance of direct capitalization is that it is perceived to be one of the snapshots that can aid in reflecting the discounted inflow cash of the selling deal. It is therefore important for the property value to ensure that the income to be generated from such a property will be based on the existing financial information regarding the doctrines of the industry. Regardless of ensuring income stabilization, it is important to take into account the market value of the recently sold properties around that area. The application of this method is ultimately essential when it comes to the evaluation of such a residential building. The reason for that is because the majority of such residential properties that do not have normal rates is the one that end up contradicting its evaluation reliable methodologies UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME, 2008 p. 37).
On the other hand, to understand the future value to be obtained from such a property, it is important to take into account its mortgage financing expense. The same mechanism can equally be utilized as the main basis of predicting its true value. This will have to take into account some of the distorted estimates as well as the predictions of the appraiser when it comes to the need of understanding the residential evaluation trends and evaluation income. Despite that, the general application of the two methods can also aid in scrutinizing the property appraisal differences that exists (Tim, 2013 p.3).
Description
Regardless of the methodological property approaches to be used, it should be acknowledged that the automated approach can also be the best means of valuing this property. The reason for that is because it is the one that can aid in estimating the true value of such a property taking into consideration its neighboring surrounding. Portfolio analysis of such a property is also something that ought to be taken into consideration when is mortgage backed securities are taken into account (Les, 2008 p.15).
In the process of using this property evaluation mechanism for the 181 Humphries road, St John’s park 2176 property, the average daily rate of such a property needs to be taken into consideration. Other than determining the number of rooms that the property has, it is its operating capacity that has the potential of reflecting its true value. In the process of using the discounted cash flow method, it is important to ensure that the appraiser of this property have had the capacity of understanding the impacts of the recently sold comparable properties. Despite that, it is important for the appraiser of this property to ensure that he or she have ignored some of the contradicting methodological approaches. The reason for that is because it has the potential of contradicting the identification of some of the macroeconomic and economic factor that affects its selling price (Robert, 2004 p.13).
Thus, the significance of this approach is that it will aid the appraiser of this property to efficiently analyze its portfolio as compared to the process of using it in evaluating what other surrounding properties could have generated. The reason for that is because research indicates that a large percentage of the idiosyncratic risks encountered are ultimately contained it the portfolio levels of such properties (Millington, 2013 p 89).
According to the modern research, property value takes into consideration various parameters. The first one is comparing it with other existing homes that were sold or bought. This is the one that has the potential of presenting comparative market analysis to both the buyer and the seller. The reason for that is because such factors are the use that can be used as means of coming into a reasonable profitable selling amount. This then implies that as the property management team for such a residence, it is vital to ensure that the valuation income is something that ought to be the perspectives of the logical appraiser at the end of the day. This is important because it is the one that has the ability making people to understand its valuation approaches taking into consideration the area that it situated (Valuation principles and practice, 2007 p. 143).
According to the modern property valuation approaches, the truth is that the general estimation of the fair value of such a property is something that has been realized to have the potential of fascinating the majority of individuals who desires to own such houses. From the existing property valuation literature surrounding the person to be involved in the appraisal process, the truth is that the general valuation of residential properties is something that is perceived to one of the ultimate means of building ultimate gains which are can be represented in liquid assets. This is what will determine the interest to be gained during its evaluation process (Millington, 2013 p. 31).
Conclusion
From the above perspective, it should be understood that, the same approaches that have the ability of reflecting the manner in which other existing valuation approaches has the ability of generating the existing property valuation approaches. During the investment cycle, the whole procedure will have to take into account the need of formulating some of the mathematical formulas that can aid in reflecting the true value of the property. As an art and science, the valuation of such a property will ultimately take into account the assumptions that the appraiser can use ss for the purpose of generating equitable returns. Thus, property valuation is one of the factors or mechanisms that are used to generate income. The reason for that is because it is the one that has the ability of enabling the property appraiser to have the ability of determining the expenses to be incurred such a transaction.
References
ABDUL HAMID MAR IMAN. (2002). An introduction to property marketing. Johor, Penerbit Universiti Teknologi Malaysia (UTM).
BAH, E.-H. M., FAYE, I., & GEH, Z. F. (2018). Housing market dynamics in Africa. http://public.eblib.com/choice/publicfullrecord.aspx?p=5589085.
ISAAC, D., & O'LEARY, J. (2012). Property valuation principles. Basingstoke, Palgrave Macmillan. http://public.eblib.com/choice/publicfullrecord.aspx?p=4763964.
LES ,R. (2008). Economics for the Modern Built Environment. Routledge Press
MICHAEL, B. (2016). Introducing Property Valuation. Taylor & Francis Press
Millington, A. (2013). An Introduction to Property Valuation. Taylor & Francis Press
ROBERT, F. (2004). European Convergence in Property Valuation: How do the German Open-End Property Funds measure up? diplom.de Press
TIM H. (2013). Investment Property Valuation Today. Taylor & Francis Press
UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME. (2008). Housing finance mechanisms in [name of country]. Nairobi, United Nations Human Settlements Programme.
Valuation principles and practice. (2007). Deakin, A.C.T.: Australian Property Institute.
WYATT, P. (2007). Property evaluation in an economic context. Oxford ; Malden, MA : Blackwell Pub
