Property valuation

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PROPERTY VALUATION

• BY
•  
• WEST KENYA REAL ESTATE LTD
•  
• _at_2015-2020

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WHAT IS PROPERTY VALUATION?

• A property valuation is a detailed report of a
  propertys market value.
• This is defined by the International Valuation
  Standards Council as the estimated sale price
  between a willing buyer and a willing seller in
  an arms length transaction, after proper
  marketing and where the parties had each acted
  knowledgeably, prudently and without compulsion.
  

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WHO NEEDS PROPERTY VALUATION?

• (1) Buyers
• To know the market value of the property to avoid
  overpaying
• (2) Sellers
• To avoid settling for less than the market value
  of the property
• (3) Lending institutions
• To ensure that the property given as security has
  enough value to cover the loan facility being
  advanced
• (4) Tax authority
• To determine the tax liability related to a
  property.

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PURPOSES OF DOING PROPERTY VALUATION

• (1) Collateral
• When a property is to be used as collateral to
  secure loan
• (2) Mortgage
• When a mortgage is to be extend for property
  acquisition
• (3) Disposal/Sale
• To establish the market value of a property
• (4) Insurance
• To establish the actual market value for
  insurance principal value and premium
  determinations

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• (5) Book/Audit/Balance Sheet
• To establish the value to reflect in the books of
  account as the value of a property
• (6) Taxation
• To help in establishing the tax obligation
  relating to a property
• (7) Stamp duty
• To establish the value for purpose of calculating
  stamp duty when ownership is moving to another
  person

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FACTORS AFFECTING PROPERTY VALUATION
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• (1) Location
• A property located in a remote place will attract
  lesser value as compared to a similar one in a
  developed place like market centres or towns.
• (2) Size
• The smaller the property the smaller the value
  and the larger the property, the bigger the
  valuer.
• (3) Age of the property
• A new property will fetch more value as compared
  to an older property. The age helps to determine
  the remaining useful years of the property.

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• (4) Condition
• The condition like new, old, damaged, repaired or
  not, well maintained or poorly maintained. All
  these affect the value.
• (5) Demand supply
• The higher demand the higher the value and vice
  versa. The less available the property is, the
  higher the value and vice versa.
• (6) Economic outlook
• During economic recession or hard time, the
  property value will come down as compared to when
  the economic is booming and there is money in
  circulation.
• (7) Income
• The more income the property is generating, the
  higher the value of the property.

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INTERESTED IN PROPERTY VALUATION?
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• CONTACT US TODAY
• West Kenya Real Estate Ltd
• Kondele Kibos Road, Kodiero Business Centre,
• 1st Floor, Room 1
• P.o, Box 2518-40100 KISUMU
• Tel [phone]
• info_at_westkenyarealestate.com
• Whatsup254724481087/254789217685
• Website https//westkenyarealestate.com