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...