Real estate valuation is the process of making a report which contains information about the present monetary value of a landed-property, the size of the building and the structure on it, the general and technical details, the physical status (especially if there are structural flaws) and the cost of properties with similar attributes in the same area.
The position of a real estate property remains the same in every part of the world – An Asset with fluctuating value. Since assets rarely have a fixed value, the burden lies on the holder of the asset to constantly be abreast with its current value.
Considering the number of variables involved, you can only know the true worth of your property when you engage the service of a property valuation firm.
Regardless of the method used in achieving this valuation, you should take note of the following variables as they almost always hold the bigger influence whenever a real estate property is being valued in Nigeria.
6 Important Factors About Real Estate Valuation in Nigeria
1. The present state of the economy
Setting aside the construction and maintenance cost of a property, the present state of the economy is a major determiner of a property’s monetary value. In other words, more money in circulation means that properties will command a higher amount and better purchasing power.
2. Political activities
Politics plays a big role in virtually every stratum of the Nigerian society. A political decision/activity can swing the price of properties in any direction. A case in point is the steep drop in the values of properties in Abuja after the 2015 election.
3. Architectural Design
Properties are created with different architectural aesthetics. While some styles stay longer, others quickly go out of fashion. If your property happens to be one with evergreen or the in-demand style, it will most likely command a higher value.
This variable plays a very significant role in determining the value of your property. You can be assured of a steady increase in the value of your property by its mere presence on a particular location. In the same vein, the government or a corporate body’s decision to sight a particular facility (airport, train station, bus parks or industrial site) in your location can also significantly increase the value of properties. A case in point is how the establishment of a train station in Idu terminal significantly increased the value of all landed properties in Idu and its environs.
This is one of the factors the owner or the valuer has zero control over. Properties demand varying values at different times of the year. The same property that is valued at a particular figure in January might have significantly increased or decreased before the end of the next month due to a recently perceived flaw or any other subjective or objective reason.
6. The valuing firm
Though the value of most properties are objectively derived by weighing the influence of the above variables and many others, having an experienced real estate valuer can go a long way in wrapping the needed sentiments required to give you a more accurate value of a property.
Conclusion on real estate valuation in Nigeria
The factors that affect the value of a property in Nigeria are obviously more than what is listed above. Also, the influence of any or all of the variables involved can change in a blink. It takes an experienced real estate valuer to quickly recognize these changes and take the corresponding action.
More importantly, property disposal and acquisition are not the only actions that call for property valuation. Taxes, insurance, mortgage application and the need to properly set an appropriate rate for a property are just a few of the reasons why we need the services of a property valuation firm.
Do you have any inquiry about property valuation and why you need it? Contact a reliable real estate valuation expert for an exclusive breakdown of the benefits of property valuation and the important things to note when your property is being valued.