Why would you require Property Valuation Services in Ethiopia?
Estimating the value of real property is important to a variety of endeavors, including real estate financing, listing real estate for sale, investment analysis, property insurance and the taxation of real estate.
For most people in Ethiopia, determining the asking or purchase price of a property is the most useful application of Property valuation.
Factors Property Valuers in Ethiopia consider when valuing a property
1. Economic and social trends in Ethiopia
Unlike many consumer goods that are quickly used, the benefits of a property are generally realized over a long period of time.
Therefore, an estimate of a property’s value must take into consideration economic and social trends, as well as governmental controls or regulations and environmental conditions that may influence the four elements of value:
2. Demand
The desire or need for ownership supported by the financial means to satisfy the desire;
3. Utility
The ability to satisfy owners’ desires and needs such as roads, water supply, electricity, telephone and internet e.t.c
4. Scarcity
The finite supply of competing properties
5. Transfer-ability
The ease with which ownership rights are transferred.
Value Vs. Cost and Price
Value of a property is not necessarily equal to cost or price. Cost refers to actual expenditures; for example, materials and labor.
Price, on the other hand, is the amount that someone pays for something. While cost and price can affect value, they do not determine value.
The sales price of a house might be 15,000,000 ETB but the value could be significantly higher or lower.
For instance, if a new owner finds a serious flaw in the house, such as a faulty foundation, the value of the house could be lower than the price.
Market Value
An appraisal is an opinion or estimate regarding the value of a particular property as of a specific date.
Appraisal reports are used by businesses, government agencies, individuals, investors and mortgage lenders when making important decisions regarding real estate transactions. The goal of an appraisal is to determine a property’s market value: the most probable price that the property will bring in a competitive and open market.
Market price
The price at which a property actually sells, may not always represent the market value.
For example, if a seller is under pressure because of the threat of foreclosure, or if the property was sold in a private sale without being exposed to the open market, the property may sell below its market value.
Do you Need Asset Appraisal Service in Ethiopia?
Temesgen Property Valuator 