We’re already at the end of April and it’s as good a time as any to ensure that we’re on top of our goals. How are those real estate goals coming along? There’s so much to know, so we decided to break a piece of it down for you. Let’s talk property valuation, an essential part of the home ownership process.

Here is what you need to know about property valuation:

What is Property Valuation – Property or land valuation is largely about developing an accurate opinion about the market and insurance value of a property. Property valuation is necessary for helping individuals to make more informed decisions when handling any real estate transactions.

The Value in Valuation – If you’d like to strike the right deal for a property through a fair and competitive rate then property valuation is worth the spend. Here are some reasons why this is an important part of the process:

• Thinking of property mortgage? If you decide on taking out a mortgage whether for the initial purchase of a property, construction, addition, renovation or acquiring a further interest in a piece of real estate, then the lending or financial institution will require a property valuation to ensure the property being valued is good security for the loan. This will of course help you and the lending institution to learn more about the property and influence the loan amount.
• Buying or selling a property: A property valuation can help individuals thinking about buying or selling a property to understand what the market value of the property is to inform the negotiations. The Valuation Surveyor will take various factors into account such as location, building and or land size, amenities, market conditions, among other things.
• Property rental: Let’s say that you’ve bought your property and decided on renting it, then a valuation can be very helpful in the process. The property valuation will help you the owner to determine the most competitive rental price for your property. In addition, tenants can also procure their own valuation report to aid the negotiations of the rent, which is more commonly done for commercial properties.  
• Want to transfer your property? If at any point you decide on transferring your property to someone else, you’ll be required to know the estimated value of that property, and this is where the property valuation comes in. If an attorney-at-law is handling the transfer, usually their fees are based on the value of the property being valued and the valuation will prove useful. Furthermore, the valuation also helps in expediting the process of determining the calculation of transfer taxes done by the Tax Administration of Jamaica’s (TAJ) Stamp Office. 
• Property Tax: It’s key to note that in Jamaica property taxes are only charged on the unimproved land value which means no site improvements such as fencing and building are factored into the valuation done by the government. If, say someone is dissatisfied with the value assigned to their property by the government, by way of property taxes, they can secure a valuation report from a Licensed Valuation Surveyor to launch an objection.

The Valuation Surveyor: Do you need them? Short answer, yes! Your Valuation Surveyor is critical in making the entire process come together seamlessly. They do the deep dive into all property related matters, well that’s how we do things here at the VM Group. When assessing a property, a valuation surveyor appraises and gathers information on things such as the location of the property, the condition, the construction quality, design and layout, the age of the property and even seemingly simple things such as the type and condition of fixtures or disrepairs. They bring all these details together along with market analysed data of the properties in the immediate or comparable locations.

We get that adulting can be demanding and reviewing that list with your extrinsic goals can be even more frightening, especially when things seem to be ticking off slower than anticipated. But when it comes to the big-ticket items on your list, such as real estate or property ownership, VM Group is able to transform the panicking into possibilities. From competent, capable and caring valuation surveyors to real estate agents, our commitment to bringing your property to you remains resolute. For more on VM property services click here.