Some people can make several mistakes when they are determining the comparative value of a property without getting help from a professional. This is because such people may give undue importance to unreliable sources of valuation information. This article discusses some of those unreliable sources of valuation information that quantity surveyors regard with caution.
Asking Prices
Some people opt to base asking prices on the ones of properties that are similar to the ones that they want to buy. Asking prices are usually not an accurate source of comparable valuations because they are often subjective statements of the value of the property. Quantity surveyors therefore pay limited attention to asking prices as a basis for determining the value of a similar property.
Published Information
It may also be unwise for you to rely on a published database of comparative valuations of different properties. This is because such databases may have used unverified data to arrive at the information that they put out. Experienced quantity surveyors can save you from depending on such potentially unreliable publications by investigating the systems that the publishers use to verify the accuracy of any information that they receive. This investigation can then help you to decide how much weight you should give to the information that you have obtained from that publication or database.
Historic Evidence
Some properties may have historical data about the prices that they were sold and bought at by previous owners. Historical data may also be available regarding similar properties and their sales prices. How much should you rely on such historical data? Only a quantity surveyor can determine how helpful such information may be. This is because the context in which those properties were bought at those prices may have changed. For example, the residential property may have fetched a premium price because the area was a bustling, prime location at the time. Only a professional can correlate the context of the historical data with the current context of the property in order to arrive at a correct comparative valuation.
Indirect Evidence
Indirect evidence, such as indices and interest rates, can also be used to arrive at a comparative valuation of a property whose current value cannot be easily estimated for several reasons, such as the fact that it hasn't been in use for many years. However, that indirect evidence may be more subjective than objective. The quantity surveyor will therefore crosscheck it against other data in order to determine how much weight that indirect evidence should carry during the valuation process.
As you can see, the process of determining the comparative valuation of a property without reliable data is fraught with many pitfalls that a layperson may be unable to navigate on his or her own. It is therefore advisable for you to hire a quantity surveyor so that you can have expert help during that complex process.
Share18 July 2017
Hello! Welcome to my tax blog. My name is Phillip, I am a businessman who lives in Sydney, Australia. Last year, I realised that my tax bill seemed very high. My friend suggested that I contact a tax service who would be able to offer help and assistance in rearranging my tax liabilities. I was a little unsure, but I took my friend's advice. The advisor was great. He looked over all of my financial data and recommended some minor changes I could make which could drastically reduce the amount of tax I would owe. I hope you like this blog and find it useful.
