Determining the value of real estate is necessary because the real estate market is not perfect. As a rule, reliable data is lost and in some cases market prices are by no means a valid value indicator. Therefore, the main problem for property is very important for decision making, property valuation is needed.
As an example, A real estate investor might want to determine the possible prices for buying investment properties.
The seller might want to set a reasonable offer price or consider other alternatives, e.g. owning, refinancing, or exchanging property, and may want to estimate available capital or net capital at the current property.
The real estate lender wants this information when trying to decide whether to take a real estate loan. The tax advisor also wants this information to determine the estimated value of the property.
Of course, this is based on an assessment of "market value", which are the main task and the main concern for most analysts who are looking for real estate valuations. However, before continuing, we would like to mention that many real estate solutions and problems require evaluations of various other values, including
Investment Value – This is the value that real estate investors will give based on individual requirements, tax rates, ability to finance property, etc.
Unsafe Value – This sets the value for parts of the property that can be physically tampered with.
Estimated Value – The value set by the tax man for the purpose of collecting local property taxes.
Lent – This will secure the mortgage on the property.