Buying and selling of any property in real estate bring two terms along with it, which creates confusion among the people. So here in this post we will tell about those two terms i.e – Property worth and property value.
“Property worth” is the term used to denote the cost of the property in monetary terms.
Whereas “Property value” is the broader term that is enclosed by the cost and emotional feeling attached to the property. It can also be understood as “importance”.
Property’s worth can be estimated based on the comparables and market data, there is no need to visit the real estate property.
But while finding the real estate property valuation, viewing and assessing the property becomes necessary. It matters a lot to check the condition of the property and knowledge of the market condition.
Property worth is the cost decided between the willing buyer and seller at which they are ready to make the transaction. Supply and demand plays a vital role in determining the price or worth of the property. When supply is high, demand decreases and price of the property decreases.
When supply is low, demand increases and property price also increases.
When we talk about property’s value then it is an opinion for the property at which it would sell for taking the features and benefits of the property into consideration.
Say for the worth or price of a house is $ 1,50,000 but its value may get varies.
As the house owner may feels that open living area with side pool may carriers more value.
But on contrary the buyer will not find it more useful and place less value for it. Value varies among the buyers. For example – Some place near the airport, values more because family members have to travel frequently via air. So the place near the airport values more to them not to the others. On the other side a buyer does not know the how to drive and does not possess any vehicle then for that buyer property near the bus line or from where public transports are easily available is more valuable to that buyer.
The word “Value” in real estate indicates the significance and importance of the property. House that you have built may carries more value to you because your heart, money and resources are involved in it. But to other it may not carry such significant value as for him it is a materialistic property made of concrete and cement.
There are two “Values” in real estate –
Appraised value and Market value are the two ways of determining the property value.
Market value of house is valued by the professional and qualified property valuer, who takes the complete inspection of the independent house by keeping the market condition into consideration and then evaluates the accurate house value with the help their knowledge and strong analytical skills.
Whereas as appraised value is estimated by real estate property agents who are not qualified valuers. Just on the basis of experience and previous sales history they predict the property value. Which is not authentic one.
Residential Property valuation is imperative for right financial decisions. So it is recommended to have the house valuation or property valuation with the experienced property valuer who possess the great working experience and updated market knowledge.