Property valuation helps a person or an organization to know the real worth of their property. The fair price of land, home, factory, the building is found using the property valuation methods. Property valuation includes various things such as estimation of a brand, copyright, intellectual property rights, goodwill and a company’s performance in marketing and promotion. There are numerous reasons why a property should be valued. Here is a list of some important reasons people get land valuation Brisbane done. 

Buy or sell a property - When a person plans to buy or sell a property it is important to get the property valuation done. Even when a person wants to rent out his property, he should get the property valuation done to have the right idea of the rent to be charged for the property. The rent of a property is usually 10% or less of the estimated price of the property. 

Mortgage a property - Sometimes a person might have to mortgage his property to seek a loan. The valuation of a property becomes important in order to understand the amount a person can receive for mortgaging the property. 

Taxation - People need to pay tax for the property they own, whether individual or commercial. The valuation of property becomes important when calculating the property tax. The taxes charged include wealth tax, municipal tax, property tax, vacant land tax, ground rent tax, etc. 

Transfer of property - If a person wishes to transfer his property to a family member, he will need to get the estimated value of his property. The stamp duty is calculated on the estimated value of the property which needs to be paid. 

Compulsory acquisition - If an individual or an organization ends up bankrupt, the situation is called a compulsory acquisition. The property of a person or organization gets auctioned in such cases which is why the valuation of the property is important and a person would want to get it done by a third party he can trust. 

To get land valuation Brisbane service for residential, commercial, industrial, retail, rural, specialist properties, contact Australian Valuers. They help figure out the true value of the property using the most accurate methods. The methods used for land valuation Brisbane are comparison method and the summation method. 

Comparison method - The comparison approach is a method that is common among all property valuation methods. It is used for the valuation of the land and residential buildings. It compares the subject property with the same type of property as suggested by the name. The properties which are used in this method to evaluate the price are known comparables. The factor that matters here is that the subject property should within a year under normal market conditions. To get a clear comparable valuation done, three or four comparables are required. It helps evaluated accurate property value. More comparables are required as finding two similar properties is nearly impossible.

Summation method - It is considered to be one of the best methods for property valuation. It uses factors such as the desirability as a major factor in estimating the value of a property. The houses are not similar to each other and direct comparison is a bit difficult to make. The valuation made through comparisons can be unreliable at times. The summation method estimates the value of a house on 4 factors which are building value, inclusions, ground improvements, and land value.

1. The building value is easier for people to understand and figure out as it is the cost of a building in a particular area. 
2. Inclusions are what people need to consider while getting the estimated value of a land or building. Inclusion includes things such as drapes, blinds, light fittings, dishwashers, curtains, and carpet. The cost of inclusion is not recovered if the property is sold by considering other methods of valuation. 
3. Ground improvements mean the area outside the house which includes fencing, footpaths, driveway, garden walls, lawns, fountains, barbeque, swimming pool, etc. 

It is important that a person understands the importance of getting the land valuation Brisbane done in order to avoid incurring a loss on the sale of property that could have made him a good amount of money.