If truth be told, acquiring professional services of one of the best valuation companies in Dubai is very beneficial for those who want to sell or buy a property. Property valuation is considered one of the best means of determining the current market value of a property these days. If you believe, that you can simply calculate the market value of a property by comparing it with similar kind of properties in the same locality, then you are wrong. It requires comprehensive knowledge and understanding with the technicalities that you will have to be fully aware of for the accurate valuation of a property. Fact of the matter is that there are a number of different aspects that you will have to consider when evaluating the current market value of a property. To give you a clear idea about the property valuation process, let’s discuss how you can calculate the market value of a property that you are interested in selling or buying.
One of the very commonly used methods of calculating the market value of a property is known as income method. In this method market value of a property is calculated based on the income that a property can generate if acquired. Of course, this method requires a number of assumptions about the income aspect of the property to calculate the accurate market value of the property by predicting the rental income of the property or estimating the resale value of the property. Income method is the most popular method of property valuation among property investors who acquire properties for rental or reselling purposes. If you are going to calculate the market value of a property using income method then you will have to keep the following things in mind to make an accurate valuation of your property:
1- How much rent you can generate from the property
You will have to make an accurate estimation of the monthly rental amount that you can generate from a property to determine its market value
2- What will be its resale value?
Another assumption that you will have to make for the valuation of a property is that what will be its resale value in 1,2 or 3 years depending on how long you want to hold that property with you.
Once you have those figures with you, you will have to determine the profitability and risk factor which can prove to be a very difficult task for you. This is why you should simply take on the services of one of the top chartered surveyors in Dubai to help you get an accurate valuation of your property.