Going about Property Valuations? Hire a Property Valuer!

Just like residential property, a large number of people are moving today to commercial properties in real estate market. FVG Property is the top real estate allied service providing firm in that offers property valuations services, and provides best buyers advocates Melbourne and vendor advocatesMelbourne. Mark Ruttner, the managing director of FVG Property and a renowned property valuer all over Melbourne shares his views in an interview. He speaks on what is the real crux of property valuations, what exactly a valuer looks for in a property, and how a residential, commercial, industrial, or retail property is actually valued by a property valuer.

No matter what kind of property you are looking for, a residential property or a commercial one, Mark strongly recommends hiring an expert property valuer to have a thorough look at the property and advise you regarding your final decision. According to Mark, it's very important to have a property valuer before you go in to the heart of the matter and take any big decision about any property in the market.

Mark gives a quick overview about what a valuer should or should not be doing at the time of valuations - "As far as a residential property is concerned, before physically inspecting the property, a good valuer in Melbourne should follow thorough property research which would include the actual sales over the last six months and the affected sales over the same period." These sales must have to be comparable in terms of land size, building size, and location. While actually inspecting a residential property, a valuer is must to take brief description of each of the areas in the property.

In a nutshell, a valuer will have a sales analysis before evaluating any property. "Location, general amenity, and convenience of being within the city area are the three big keys that drive the commercial property valuations", says Mark.

According to Mark, the major difference between a residential property and a commercial one is that in case of a commercial property, we look for an income stream. So the job from the valuer is obtaining comparable sales and comparable rentals. According to him, determining the commercial rental applicable to a particular property is the key factor during its valuation.

About bidding, Mark says that bidding for a property in a public auction is the best way to indicate its actual market value.

 So, there's not much of difference regarding evaluation of commercial and residential property, the only major task of a property valuer is to go out and determine the market rental value.