Through the process of valuation, you will have an idea of the actual value of your property, which is usually based on the location, condition, and many other factors. The whole process of valuation is done through a licensed surveyor or valuator who assesses your property by taking notes and photos. A copy of the valuation report is given to you afterward.

One essential factor that the home valuator will take into consideration in his assessment is the depreciation of your property over the years of its existence. The valuator will also give importance to the many improvements and fixtures that you have added into your property, like storage or a water well pump, for example. Indeed, the value of your home, as reflected in the valuation report, is a comprehensive product of adding everything that is permanent and of value inside your house except personal and movable small-value devices.

Do you really need a home valuation? Yes. Every responsible homeowner should let his property be evaluated for the following reasons.

To Be Able to Pay Your Taxes Correctly

Every good citizen of the state should pay the correct taxes on his properties. This is one of the reasons why you should have a home valuation every two years. It will let you know the exact amount which should be paid for your property tax.

Because properties are bound to depreciate and if you acquired your property ten years ago without doing any renovations or adding some fixtures, then your property tax should have also gone down. As we all know, our tax increases when we accumulate properties, and it should also decrease when our property decrease in value.

To Know How Much You Will Sell Your Home

When selling your home, you should know the real value of your property, so you will know how much you will sell it. Of course, you may want to raise your selling price so you can have more profit, but expect buyers to be informed too. For sure, before the transaction will progress, he will definitely ask for your home’s valuation report.

When You Co-own the Property

There are instances that a property’s ownership is shared by two or more individuals; the most common are siblings. With an updated valuation report, you will know the real amount of what belongs to you. This is crucial upon selling the property and for taxation purposes also.

For Insurance and Refinancing Purposes

You should know that before taking any insurance policy that you need a home valuation report first so you will know the real value of your property. If you have not let your property valuated, you might end up finding your property underinsured. When refinancing old debt, you may only be able to get a new loan with a new valuation report of your property.…