Connect with us

Property

By the Book: What is property valuation?

Published

 on 

PHUKET: Valuation is a process of estimation of the most probable price that would be paid for a property under typical market conditions applicable at the date of valuation.

The value of a property is the present value of all future benefits expected to be obtained from possession of the property.

The ability to provide a professional and accurate valuation relies on a combination of the professionalism of the valuation consultants and the quality of available market information.

SRE (Siam Real Estate) service uses the market approach, which examines the title, state, age and condition of the property, as well as major selling features. We then compare these with similar properties in the area, taking into account current market factors and the immediate local environment to arrive at a fair market price in the present market.

The valuation process does not review due diligence; either right of property, or access rights or title ownership. Public utilities and services are also not considered.

Due diligence should be carried out by a lawyer.

SRE specializes in appraisal and valuation reports covering: residential properties, houses/villas, town-houses, shop houses, condominium housing development projects, and apartments – also making direct comparisons with similar land plots.

The purposes of the valuation cover the following:

– Current market value
– Asset financing
– Rental assessment
– Mortgage finance
– Security value
– Divorce proceedings
– Dispute resolutions
– Risk analysis
– Insurance cover
– Fire sale estimate

Homes are valued based on what an average person would be willing to pay for a similar property. This data is derived by looking at current sales in Phuket.

Every attempt is made to use sales that have the same characteristics as the property being valued (subject property). These include, but are not limited to, area, number of bedrooms and baths, whether it has a garage and other similar factors.

If a subject property doesn’t have enough matching sales, comparisons are made with properties most closely resembling that one, while making suitable adjustments to create an equitable value.

An example of this would be if the sale property had a swimming pool and the subject didn’t, the sale price would be adjusted to reflect not having a pool.

A sale at fair market value is defined as the amount of money a well-informed buyer would pay, and a well-informed seller would accept, for property that has been on the open market for a reasonable amount of time, assuming neither buyer nor seller is acting under pressure.

When a sale is deemed valid, it can be used to help determine fair market value for other similar properties.

The goal is to value all properties fairly and equally, while being as close to fair market value as possible.

For more information, contact Kevin Hodges, the North Branch and Investments Manager for Siam Real Estate (SRE) in Phuket and author of SRE’s Phuket Residential Market Research Report. He has more than six years’ experience in Phuket’s real estate market.

Tel: 076-324042. Email: kevin@siamrealestate.com; www.siamrealestate.com

— Kevin Hodges

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Eastern Thailand10 hours ago

German man believed to have monkeypox briefly fled police

Thailand11 hours ago

New app to help migrant women in Thailand facing abuse

Cambodia12 hours ago

Nigerian man recovers from monkeypox, handed to Cambodian authorities

Sponsored3 days ago

The return of the most important coffee event in Thailand

World13 hours ago

Unusually heavy floods in Pakistan kill 549, thousands of homes damaged

Thailand13 hours ago

How to get the Thailand Elite Visa?

Transport14 hours ago

BTS is offering a free ride… with your mom

Join the conversation on the Thaiger Talk forums today!
Bangkok14 hours ago

Fire at Energy Ministry’s compound in Bangkok

Phuket15 hours ago

2 meth busts in Phuket this past week

Politics15 hours ago

NIDA Poll: PM Prayut should not extend term after August 24

Chon Buri17 hours ago

Mountain Pub fire: 15 victims dead, owner arrested, club uninsured

Chon Buri17 hours ago

Police transferred, safety measures enacted in wake of Mountain B fire

Bangkok18 hours ago

Bangkok taxi driver who snapped himself raping teen gets jailed

Video18 hours ago

Building a $100mil business in Thailand feat. Michael Kenner | Thaiger Podcast Ep. 1

Tourism19 hours ago

Major jump in Thailand Airbnb searches

Economy19 hours ago

Thailand’s hotels are short on workers

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending