VALUATION DESCRIPTION & DEFINITION
Our service uses the MARKET APPROACH which examines the title, state, age and condition of the property, the major selling features and compares similar property in the local area and takes into account current market factors, the immediate local environment and any encumbrances to arrive at a fair market price in the present market.
The valuation does not review due diligence either right of property or access rights or title ownership. Public utilities and services are also not considered. Due diligence should be carried out by a lawyer.
We specialize in appraisal and valuation reports covering:
- Residential properties: Houses/villas, townhouses, shop houses, condominium housing development projects, and apartments.
- Land plots – a direct comparison with similar land
Purposes of valuation cover the following:
- Current market property value
- Asset financing
- Rental assessment
- Mortgage finance
- Security value
- Divorce proceedings
- Dispute Resolutions
- Risk Analysis
- Insurance cover
- Fire sale estimate
Client confidentiality is an important part of our business. We take measures to ensure client confidentiality is maintained at all times. If we believe there could be a conflict of interest in accepting an instruction, we will disclose this to both parties in advance.
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A Definition of Valuation:
"Valuation is a process of estimation of the most probable price which would be paid for a property under typical market conditions applying at the date of valuation..."
"The value of a property is the present value of all future benefits expected to be obtained from possession of the property."
The ability to provide a professional and accurate Valuation Service relies on a combination of the professionalism of our valuation consultants and the quality of available market information.
The residential valuation model used is the Market Approach. Homes are valued based on what an average person would be willing to pay for a similar property. This data is derived by looking at current sales in Phuket. Every attempt is made to use sales that have the same characteristics as the property to be valued (subject property). These would include but are not limited to; area, number of bedrooms, baths etc., if it has a garage etc. If a subject property doesn’t have enough matching sales, adjustments are made to the sale properties most closely resembling that property to create a more equitable value. An example of this would be; if the sale property had a swimming pool and the subject didn’t the sale price would be adjusted to reflect not having a pool.
A sale at fair market value is by definition: The amount of money a well-informed buyer would pay and a well-informed seller would accept for property that has been on the open market for a reasonable amount of time, assuming neither buyer nor seller is acting under pressure. When a sale is deemed valid it can be used to help determine fair market value for other similar properties. The goal is to value all properties fairly and equally, while being as close to fair market value as possible.
The MARKET APPROACH involves comparison of a property with the characteristics of similar properties that have recently been sold. There is also the COST APPROACH which involves estimating the replacement cost of a structure, and adjusting that estimate to account for depreciation. Lastly, the INCOME APPROACH is an analysis of a property’s value based on its capacity to generate revenue for the owner.
Comment & Disclaimer:
This valuation report is an assessment only and the seller acknowledges that the completion of a home valuation through SIAM REAL ESTATE PHUKET CO.LTD hereinafter referred to as "SRE" is an indication only based on available market information and analysis. SRE does not warrant the accuracy of this information or data sources used to prepare this valuation assessment. SRE provide a logical calculated estimate of a probable selling price of a residential property. This valuation estimates property worth at the date of this report and is intended for personal use only and should not be considered for any insurance or financial use. SRE accepts no liability or warranty whatsoever for the accuracy, expressed or implied of this information or any indirect, special or consequential damage arising out of the use of this information.
Contact: Richard Lusted on + 66 (0)76288908 for appointment.