Steps involved in a complete and accurate Fastighetsvärdering

Evaluating the value of a property can be a very complex process, which is why one must hire experts for this as they have a lot of knowledge and experience of the process as they have done it for a lot of people, number of times. Doing it on one’s own can be quiet a challenging task as one might not have access to all the information these experts have. The experts take care of all the steps, from doing a complete fastighetsanalys to making the final report with all the values. For this, they charge a small fee which is fair as they are putting in a lot of time and effort to ensure everything is in order. It should not take more than a day or two to obtain the final report from the evaluator. For an exact value, one could take a second and third opinion from other evaluators and arrive at a final figure by taking an average of all the values. Below are the steps one must follow to obtain the value of a property:

Defining the problem

This process includes identification of the property, the address, common name and legal description. Also, what all has to evaluated and for what purpose is the property being evaluated. It could be for sale or purchase, for loan or tax matters or for lease matters. Also state the data, scope and other limiting factors.

Gathering information

This includes gathering general information from the local neighbourhood and government. Also inspect the property, improvements, depreciation, history of ownership and use etc. This gives a deep insight about the property and helps in estimating the value to a great extent.

Choosing the method

For the värdering fastighet process, the evaluator could use the cost approach, where the value is obtained by adding reproduction costs of improvements to the market value of the land. Another method is the comparable sales approach where the value is based on market prices. The income approach can also be used where the anticipated benefits from ownership are assigned an estimate value (Investopedia, WHAT YOU SHOULD KNOW ABOUT REAL ESTATE VALUATION, 2012)

Report writing

A final report is made where all values from the various methods used are reconciled. This is then given to the customers who use it and also compare it to other evaluators at times. This report must contain all the true and fair information and nothing should be hidden in it.

Colliers is one such agency which undertakes fastighetsvärdering and offers other real estate services. More information is available on their website.