Real estate valuation is one of the necessary activities to help real estate owners determine the value of real estate. So what is the purpose of real estate valuation? Join us to find out right away.
What is the purpose of real estate valuation?
The purpose of real estate valuations or so on is that real estate in general can be divided into many different categories. Examples include: Buying and selling real estate, preserving property, converting property ownership, mortgaging, calculating tax, liquidating property, calculating clearance compensation price. To better understand the effects of real estate valuations, we will explain in more detail shortly. You can follow it to see.
Real estate valuation has many different purposes
The purpose of real estate valuation to preserve real estate
- Valuation of real estate to preserve properties will be served in the following cases:
- Land valuation before buying has many benefits
- Real estate valuation for service service for property depreciation.
- Real estate valuation as a basis for compensation, property insurance and property assessment.
Real estate valuation for the purpose of buying, selling or transferring real estate: This will determine the value of real estate when it is put on sale in the real estate market. Or, on the other hand, the real estate buyer can also apply to determine whether or not he is being bought or not.
The purpose of converting real estate use rights
- Used in the case of the equitization of state-owned enterprises.
- Used in the case of an enterprise contributing capital to business cooperation
- Use in case of consolidation, merger or dissolution
- Use in case of sale of an enterprise
- Use in case of real estate lease
- Valuation of real estate can be for the purpose of changing rights Real Estate Use
Valuation Purpose for Real Estate Compensation
Valuation of the property for compensation will be applied in the following cases:
- Compensation, land clearance for the land to be used for buildings. transportation, public, investment projects ...
- Compensation for damages caused by other peoples incidents, such as subsidence, collapse ...
Real estate valuation for the purpose of borrowing
- This is one of the banks regulations to determine whether a home mortgage is appropriate for a borrowers loan.
Asset valuation for insurance purposes
- Many insurance companies need to determine the value of real estate to see when signing insurance contracts, to determine the level of compensation for real estate when there is a risk. happening.
- Some other purposes
- Land valuation will also be for financial reporting and accounting and for asset liquidation or auction ...
The Above are the purposes of property valuation. real estate that everyone needs to understand
