National Diploma in Land Valuation and Estate Management at Polytechnic of Namibia

What is Land Valuation and Estate Management?

Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property. Real estate transactions often require appraisals because they occur infrequently and every property is unique, unlike corporate stocks, which are traded daily and are identical.

Overview

The purpose of a valuation is to track the effectiveness of your strategic decision-making process and provide the ability to track performance in terms of estimated change in value, not just in revenue.

Frequently Asked Questions

What are the 3 types of valuation?

Three main types of valuation methods are commonly used for establishing the economic value of businesses: market, cost, and income; each method has advantages and drawbacks. In the following sections, we’ll explain each of these valuation methods and the situations to which each is suited.

Why is property valuation important?

Property valuation helps in assessing the accurate value of a property during its sale and purchase. Moreover, it aids in tax calculation, evaluating the return on investment, for assessing income generating potential, and loan matters.

How long does a property valuation take?

Generally, you can expect a house valuation to last anywhere from 15 minutes to an hour, depending on the size and layout of your property. An agent will usually ask you to allow an hour for the appointment, so they have time to talk through the details of the property and your price expectations with you.

What is the meaning of estate management?

Estate Management deals with the appraisal, acquisition, development, marketing, or management of a property. Estate Management includes a broad category of commercial property such as offices, hotels, shops, or it can refer to the management of a residential property.

What is land valuation?

Land value is the value of the land, as well as any improvements that have been made to it. Always use an appraiser when assessing land value, as they are professionals at determining potential advantages or disadvantages for each individual property. Land value is not the same as the site value.

What is valuation formula?

The formula is quite simple: business value equals assets minus liabilities. Your business assets include anything that has value that can be converted to cash, like real estate, equipment or inventory.

What is valuation technique?

Valuation techniques used to measure fair value shall maximise the use of relevant observable inputs and minimise the use of unobservable inputs (IFRS 13.67). Inputs should be consistent with the characteristics of an item being measured that market participants would take into account in a transaction for the item.

What is valuation cost?

The cost approach is a real estate valuation method that estimates the price a buyer should pay for a piece of property is equal the cost to build an equivalent building. In the cost approach, the property’s value is equal to the cost of land, plus total costs of construction, less depreciation.

What is the difference between valuation and evaluation?

However, there is a difference between evaluation vs. valuation. Evaluation describes a more informal, ad hoc assessment; a valuation is a formal report that covers all aspects of value with supporting documentation. Others might define each slightly differently, or conclude there is no difference between the two.

What happens after valuation of property?

After the valuation has been received from the surveyor, the lender’s underwriter will have all the required information to come to a final decision and will then be able to provide a mortgage offer. At the point, the mortgage lender is willing to make an offer you will have it sent to through the mail.

Do I need a property valuation?

Perhaps one of the most common reasons you might need a property valuation is because you want to sell your home. Marketing your property at the right price is very important, as trying to sell it for more than its worth could leave you with no interested buyers, and under valuing it could leave you out of pocket.

Do estate agents take photos at valuation?

Estate agents do not take photos on valuation, but you should make your property as presentable, clean and inviting as you will for every potential buyer’s visit. Seeing your property in its best light will help make their valuation as accurate, honest and positive as possible.

How do you calculate land value depreciation?

Land can never be depreciated. Since land cannot be depreciated, you need to allocate the original purchase price between land and building. You can use the property tax assessor’s values to compute a ratio of the value of the land to the building.

What is land in Estate Management?

Land, in the business sense, can refer to real estate or property, minus buildings and equipment, which is designated by fixed spatial boundaries. Land ownership might offer the titleholder the right to any natural resources that exist within the boundaries of their land.

Why is Estate Management important?

Generally, maintenance functions include repainting, reduction refurbishment, repairs, cleaning and services. These are the important functions of estate management since it is good maintenance that can ensure that properties continue to meet their objective.