Real estate valuation is the process of determining the economic value of real property, usually at market-value based on some mandatory elements. This process is conducted by a qualified valuer who has no stake in the property and has accomplished the required knowledge. Only then, you are quoted with an accurate and reliable figure. Precisely, property valuation is a detailed report of the property’s market value.
Trust the process:
Mainly, there are 3 approaches to perform this complex process of valuation.
- Sales comparison approach- In this method, the property is compared with recently sold properties with similar characteristics and an estimated amount is derived.
- Cost approach- Depreciation plays an important role in the valuation of tangible assets. It is taken into consideration and the value of buildings and lands are estimated.
- Income capitalization approach: It is based on the property’s rate of return and net income. This process is used to estimate the value of income-producing properties such as office buildings, shopping centers, etc.
Taxation is universal:
- Calculation- Under property tax, the government performs an appraisal or estimation of the monetary value of the property and the taxable amount is charged in proportion to that value.
- Methods used- There are mainly 3 ways for calculation of property tax:
- Capital Value System (CVS)
- Annual Rental Value System or Rateable Value System (RVS)
- Unit Area Value System (UAS)
- Payment: Property tax can be paid at the Municipal Corporation or designated banks affiliated to Municipal Corporation. You will have to provide the property tax number for the identification of your property. Certain amounts are exempted on the basis of age, net income of the owner, location, etc. as per laws and regulations. You are required to pay the property tax annually and if you fail to pay it within the time limit, interest on the due amount, which can be up to 2% per month.
Take property valuation and taxation very sincerely as these are very crucial for the economy as well as for self-awareness about your property. It’s mandatory to pay tax annually. Knowledge without action is meaningless; so take actions. Visit here for further details- https://www.atticushomebuyers.com/we-buy-houses-green-bay/.