Property valuation is a methodology for precisely analysing any property’s value. It is important because it gives sellers a general idea of the price at which they should list a property. In Malaysia, the cost of property valuation is approximately 0.25% of the first RM100,000 of the property’s market value and 0.2% of the next RM2 million of the property’s market value.
Once a professional property valuer is appointed, he or she shall acquire as much information as possible, including information on the past transaction date, rentals and even the construction cost data. The information is analysed and applied to the subject property to arrive at the values. An estimate of the final value is made after reconciling these information.
However, if you would rather not hire a professional property valuer, owning to there is plenty of free information and transaction data available online, it could be easier said than done in the market of today due to the rise in fire sales and foreclosures, the valuations of two homes can frequently vary greatly, which may interrupt the entire selling process.
Nonetheless, despite the fact that setting an asking price via self-research is frequently an imprecise science, there are a few indicators that might help to provide a clearer picture in setting an asking price for your property.
1. General property condition
The condition of the property is the first and most important factor in setting a base price for your property. Valuer looks into not only the general upkeep and maintenance of the property, but a few other factors such as the overall neighborhood, the tenure (leasehold or freehold), land title (commercial or residential), the flooring for high-rise property, just to name a few.
Location is the golden mantra for real estate, it is no exceptional when it comes to property valuation. A good condition double-storey house in Cheras, Kuala Lumpur holds a different value than if the property was is in Rawang, Selangor. The reason is the supply and demand for the area. Even within the same township development, a similar product in Phase 1 and the recently completed new phase can be completely different.
3. Miscellaneous factors
Another reason for the abovementioned, apart from the market force, is the miscellaneous factors that many property owners may not be paying much attention to, such as the larger car porch area, green features (solar panel, high ceiling for natural ventilation, bigger window for natural sunlight), bonus space (balcony, maid room or store room) or better common facilities or amenities.
4. Economic trend
Last but not least, the overall economic trend is something that has an impact on your property valuation and you don’t even realise it. The same property’s valuation can be very different in bull and bear market because it affects the overall buyers’ sentiment when committing to a big ticket item, as well as the bank’s strategy when giving out loans.
Hartamas Valuation & Consultancy ensures a seamless and professional valuation service. We covers all types of landed and stratiﬁed properties including specialised properties such as shopping malls, hotels, oﬃce buildings and ongoing development projects.
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