This website uses cookies to ensure you have the best experience. Learn more

Property Valuation Essay

2603 words - 10 pages

Valuation of real estates or properties basically, refers to appraising a property or a real estate to form an opinion about the value of the property. This value is normally the properties’ market value. Properties are heterogeneous in nature; meaning they are not all identical or alike and thus, they have different values. However, it is possible to get a range for the values. There are some obvious factors like physical locaction of a property that automatically makes the market value of different properties differ. The materials used on a property and other features also contribute to making property differ in their value. Other factors such as the physical size of a property still determine a property’s market value (Histon Fine Homes, 2008).
There is a current trend in Australia of people acquiring properties and homes. Ownership of one’s property gives the owner a satisfaction and privacy and it also boosts the owners self esteem. The home provides the owner or owners with a financial asset. Financial assets can be used later to secure a loan from banks and other financial institutions that lend out money. Most Australian households believe in owning their own homes. An Australian would do anything to own a home be it borrowing or mortgaging to get one. They are even engaging in risky activities which are costing them too much. This is due to the global economic conditions and current challenges across the world. Hence owning of a home is considered to be the great Australian dream. Owning of property in Australia is a reflection on ones status according to Tucker Sundeep (2006). Everybody is aiming to own a property and more specifically a home.
Properties in the Central Business District of Melbourne are relatively highly valued than those in the suburbs. Business property valuation and residential property valuation is a service that has demand from the market. When valuing the property, the figures should not be the only issue but also the demographic factors and the services offered. When valuing the property, everything within the property should be assessed. The items inside a house should be valued by the size, the cost and the age of existence, this includes the furniture’s and any other utensils that may be available. For items like the computer, the cost and the make are of importance. The car should also be valued if it forms part of the property and the model and the year of make are of essence. The surrounding of the property should also be put into consideration; the geographical location of the property should be put into consideration (Tucker Sundeep, 2006).
There are some state laws and standards guiding on the practice of property and real estate valuation in different states in the world. Some countries require for all property and real estate valuers or appraisers to be licensed and certified. However, there are other places where the valuer needs no certification or any licenses. The most common method of valuing...

Find Another Essay On Property Valuation

Real Estate Portfolio Valuation: Annotated Bibliography

2004 words - 8 pages property valuation”? Blazenko and Pavlov investigated the economics of real estate investment when maintenance of a property enhances neighborhood value. Because a property owner does not recognize this positive externality for his/her neighborhood; they under-maintain. Blazenko and Pavlov say that smaller properties benefit most from this externality. The study showed that subsidizing the maintenance expenses of properties can induce

Environmental Quality and Hedonic Property Values

848 words - 4 pages water is an important environmental factor shaping development.” (Page 329) All in all, environmental valuation methods should be chosen using the best strategy that will work alongside the hedonic property pricing models and can change in pattern based on the environment. Works Cited Lewis, Lynne Y., and Gayatri Acharya. "Environmental Quality And Housing Markets: Does Lot Size Matter?."Marine Resource Economics 21.3 (2006): 317-330. Academic Search Complete. Web. 11 Mar. 2014. "Hedonic Pricing." Investopedia. N.p., n.d. Web. 11 Mar. 2014.

The Case for Introducing a Property Tax, Collected at Local Government Level

2233 words - 9 pages residential property should be taxed at this flat rate. A valuation of the basis of floor area or number of bedrooms would distort that actual value of the property as in certain cases low-income homeowners in rural areas may have much larger properties that those in high-value urban areas such as Dublin 4 or Dublin 6 for example. It would also make valuations of apartments problematic. The tax should not be based on the mortgage value, but the

The Complete Guide to Lease Extensions

1966 words - 8 pages , rejection of counter offer. Such date must be two months or more from when the leaseholder has issued notice of extension. Is an independent formal evaluation considered mandatory? It isn’t considered mandatory but it is strongly advised due to the nature of lease extension and property values. A valuation from a specialist surveyor will give you foundations to build upon during the negotiation process. If you choose to head into negotiations using

Texas, Utah and Tennessee Tax Systems

1327 words - 6 pages homestead exemption” (Retirement Living and Information Center). However, there is a property tax assistance program for the elderly, disabled and veterans. The measurement valuation of a property is based on 25% of its market value. Depending on the location of the residence, homeowners will be assessed property taxes from the city only, the city and county, or the city, county, and a special school/fire district rate. A local government may

Risk Management in Stock Valuation and Markets

2705 words - 11 pages Gottwald. (2012). The use of the p/e ratio to stock valuation. EUROPEAN GRANT PROJECTS | RESULTS | RESEARCH & DEVELOPMENT | SCIENCE, Steiger. (2008). The validity of company valuation discounted cash flow methods. Cummins, Xie. (2007). Efficiency and value creation in acquisitions and divestitures: Evidence from the us property-liability insurance industry. Jegadeesh, Kim, Krische,Lee. (2001). Analyzing the analysts: When do recommendations add

Solving the Foreclosure Crisis

1145 words - 5 pages value makes people doubt the reality of ever actually owning a piece of land and/or the property that is set upon it. Real Estate prices boggle the mind and intimidate the average American’s wallet. These stunning prices evoke a few seemingly facile questions to the average American earner. Why is the cost of property so high? Why does it take 30 years, a third of a healthy person’s life, to actually own their land/house? Has the valuation of

Investment Valuation Ratios

1298 words - 5 pages Investment valuation ratios compare current share price to various per-share performance indicators such as earnings, dividends, sales, and operating cash flow to help investors evaluate whether the stock is overvalued, fairly, or undervalued as an investment opportunity. Income, value and growth investors have different investment objectives and thus may have different views on a stock’s value relative to its price. The relationship between a

The Planned Management Actions for Unit 20, Apex Business Centre – Woodside Industrial Estate, Dunstable

1000 words - 4 pages occupied premises so letters can be read without delay, whilst sealing the letterbox of Unit 20 so nothing can be passed through, another security feature. Bibliography Code for Leasing Business Premises 2007 (England & Wales) – http://www.leasingbusinesspremises.co.uk/downloads/lbp_booklet.pdf [Online] - Accessed 23.02.10 Vivienne Spurge – Lecture Notes, Semester 2, Weeks 1-3 Valuation Office Agency – Property Details - http://www.2010

Balance sheet

899 words - 4 pages second cause of the difference is quite obvious. The difference is in valuation. Balance sheet items are recorded at cost. For example, a share of a public traded company is listed at par value plus any premium paid in the share holder's equity. The same share of stock can be traded for many times of its listed value in the exchange. For another example, a real property purchased years ago can be listed at its original purchase price despite its

Professional Practice - The estate agents office

2449 words - 10 pages . This is a long road but we will have to go in this direction if we want to create flows of capital extending over borders and to have comparable indices.For the time being, however, clear information should be available for each country about how valuation and assessment work in practice. This also applies to the way in which real estate funds quoted on the stock exchange value their property annually on their balance-sheets. Co-operation between

Similar Essays

An Evaluation Of Property Tax System In Malaysia

1663 words - 7 pages . Most of the appraisals in Malaysia are using conventional system to evaluate the property tax. The valuation or revaluation of the property is still carried out by manual approach. This manual approach is the main reason for inefficiency and unsystematic in local government’s property tax administration. Hence, only few local authorities in Malaysia carry out valuation using computer but this valuation done manually or through computation for only

The South African Code For The Reporting Of Exploration Results

1154 words - 5 pages and to aid in decision making. A detailed outline of the criterion includes (SAMVAL, 2008) (SAMREC, 2007): • Executive summary An Executive Summary of the mineral asset valuation. • Introduction and scope These specify the commissioning instructions which include the reference to Valuation, date, purpose and intended use of the valuation. • Identity and tenure The identity, tenure and locations of the property interests, the physical, legal and

Property Investment Analysis Report

4200 words - 17 pages Property Investment Analysis ReportContent1 Summary22 The Valuer/Client Relationship and Proposals22.1 Concern22.2 Manllison’s Recommendation32.3 Evaluation33 Valuation Methods, Proposals and Discussion63.1 Research into Valuation Methods63.1.1 All-risks Yield63.1.2 Discount Cash Flow (DCF) Techniques63.1.3 Comparative Analysis Techniques73.1.4 Pricing Structure83.1.5 Profits or Accounting Methodologies83.1.6 Evidence83.2 Discussion of Proposals

International Framework For Economic Valuation Of Wetland Areas

1923 words - 8 pages economically) and (sometimes) the economic spin off (consumptions in the region, costs of accommodation). 3. Hedonic Pricing: Here prices of for example houses are observed. By statistical analyses the environmental or nature valuation attributes in the price of property can be separated (for example, price of property decreases by 0.5% by an increase of the noise level with 1 dB(A)). This method is mostly applied to noise, but it can also be