Property valuation is an important practice in real estate. It helps the seller know the actual worth of his/her property in order not to sell at a loss. As much as the evaluation is important, there are variable that help determines the right valuation of said property, and knowing these variables are very important.

So in this article, we will be looking at these variables that determine property valuation. If you’re about to sell your property, you are in luck because I am about to reveal the secret variables that will help you evaluate your property. So grab a seat and read till the end.

Let’s find out what property valuation is in real estate

In real estate, valuation is a report which contains the present monetary value of landed property (as determined by market forces also known as variables), property types, number of bedrooms and bathrooms, other technical features, and the estimates of properties with similar features in that geographical area.

List of variables that influence real estate valuation in Nigeria:

The present state of the economy: Setting aside the building costs and maintenance, the current status of the economy has a significant role in determining a property’s monetary value. In other words, if there is more money in circulation, properties will command a higher price and have greater purchasing power.

Political activities: Politics affects almost every aspect of Nigerian society. Property prices can be influenced by political decisions or actions in any direction.

Architectural Design: Different architectural styles are used to build properties. While some trends last longer, others fade away soon. If your home is in evergreen or in-demand style, it will almost certainly command a higher price.

Location: This variable is extremely important in establishing the value of your home. The mere presence of your property in a specific location can guarantee a consistent improvement in its worth. In the same spirit, the government or a business body’s choice to sight a particular facility (airport, railway station, bus park, or industrial site) in your location can also greatly boost the value of properties. The creation of a train station in the Idu terminal, for example, enhanced the value of all landed properties in Idu and its vicinity greatly.

 

Date: This is one of the aspects over which the owner or valuer has no influence. At different periods of the year, properties require different values. Due to a recently perceived fault or any other subjective or objective reason, the same property valued at a certain amount in January could have drastically climbed or dropped by the end of the following month.

PS: Using professionals to value your property remains the best practice to get an accurate value for your property.

 

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