Property Appraisal In Kenya
Real estate valuation, property valuation and land valuation are the methods used to develop an opinion of value in the current market.It is the estimation of the property value or worth.
Due to the uniqueness of each property and the fact that the transactions do not occur frequently, makes the valuation necessary before the undertake of a property transaction.
Factors considered when evaluating a property
There are several things that affect the estimate worth of the property. Some of these factors include;
These is the major determinant of the property’s value. Each setting around a property determines the upper and the lower limits of the property value. If the property area has a better security, better orientation among other location advantages, such a property will be more worth compared to those in areas without such merits.
Availability of amenities
Availability of social amenities such as hospitals, stadiums, schools and recreation facilities influence the value of the property. Absence of such facilities, sees a property that has a reduced value.
Structure and conditions
The general outlook of a property, the level of maintenance, the type of building among others also determine the value of a property. A property that is well maintained will be of more worth compared to a property of the same nature that unmaintained.
A property that has construction faults such as leaking roofs, cracked walls or unmaintained ceilings, broken fences among others is likely to be worth a lower value in comparison to a property without building faults.
Features of the property
The characteristics of a property affect the general estimation of value of the property. If a property has an internal recreational facility such as a gym or a swimming pool, it will be of more worth in comparison to a similar property without the recreational facilities.
There are several types of values that the property appraiser tries to sought out. Some of these property values include;
This is the value that an asset or a liability should be transacted or exchanged between two willing parties. It’s the value at which a property should be exchanged in a competitive place of exchange.
The value in use
This is the net present value of a property according to a particular user of an asset at a time. This value could be above or slightly below the market value.
Its that value of a property that can be covered by an insurance policy against a risk and does not entail the site value.
This is the value allocated to a property that wants to be taken by a lender and had been used as a security for the loan acquired. It may be lower or slightly higher than the market value.
Reasons for undertaking a property valuation
- Need for sell of a property.
- Property refinancing need.
- Application for a loan.
- Appeal for property tax assessment.
- Need for value documentation.
- Planning your estate.
- Retirement planning.
- When purchasing an insurance policy.