Property valuation is a crucial part of the property buying, selling, mortgaging (loans), refinancing, renting, and insuring process in Nigeria. All these transactions require property valuations before the transaction can be fully and properly completed as it gives an opinion on the value of the property worth.
Property valuation is the art and science of determining the monetary value of the property rights included in ownership at a specific time, for a specific purpose or purposes, and by a person approved. It is the estimation of the capital or rental value of land and/or buildings at a certain time putting into consideration the location, property market performance, property type, interest rate, supply and demand, etc.
Why I need to Value My Property?
✔️resolve the issue of contested property values
✔️conclude a purchase and sale transaction (sellers, buyers and developers)
✔️examine the investment at various stages of the project.
There are many internal and external factors that can influence the value of a property, but location, size and usable space, age and condition, local market and economic condition and supply and demand seem to be the most prevalent ones.
Location is extremely important in determining the value of a property. A property that is in proximity to basic needs like the city center, schools, universities, hospitals, shopping malls, recreation areas, and public transportation will command more value and vice versa. The more popular and accessible an investment location is, the more valuable the property will be.
Size and usable space
The usable space of a property determines its value of the property. A bigger usable space will command more as it gives room for more for the user.
Age and condition
The age of the property also plays an important role in determining its value, since newer properties don’t require major renovations or repairs, so buyers are more likely to purchase them. When it comes to condition, a well-maintained older house will have a greater value than a newer one that needs extensive renovations.
Supply and demand
The supply and demand of a particular size and kind of property would also determine its value. The greater the demand for a property, the higher the price/value. The relation of property value with supply is an inverse one, and the more of something is available, the less valuable it becomes.
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