Real estate price versus value

Rashema Gordon Morgan

Sunday, January 20, 2019

Print this page Email A Friend!


THE legal term for the purchasing or selling of property is conveyancing. However, it is more intricate as it entails the act of preparing the relevant legal documents for the transfer of legal proprietorship of the property or land from one person to another.

In conveyancing a property, as the purchaser, consider the price of the property and the value of the property to you.

THE ART OF NEGOTIATION:

When approaching property dealings, it is important for both the vendor and the purchaser to know their bottom line prior to entering into negotiations as, further into the process, either party may feel as if they have gained the least from the agreement.

It must be clearly stated exactly what is being sold, thus giving the purchaser the opportunity to evaluate whether the price quoted matches the value of the property.

This simply means the value of a property is not relative to the price determined by the vendor, but its significance to the purchaser. The value is dependent on the location, the ambience, the purpose for which the property will be utilised (for example, raising a family, farming or other business ventures), and the sense of contentment it gives the purchaser.

The value will vary based on the needs of the purchaser so, once the property fulfills their requirement, the value would have been established. Therefore, consider if the property is located in a suitable area and if it is in a reasonable condition. At this juncture, the purchaser can easily decide whether the property is worth the price.

Importantly, the price being asked by the vendor will be that agreed by the vendor and the purchaser and not necessarily the original price for which the property was listed or the actual market value of the property.

Prior to agreeing on the purchase price, the purchaser should ensure that an independent valuation of the property is conducted by a certified valuator to determine that it is not overpriced.

At this juncture, having considered both the amount being asked and the value, the purchaser can easily decide whether the property is worth the price and can knowledgably and reasonably negotiate.

Rashema Gordon Morgan is an Attorney-at-Law who specializes in conveyancing, probate and civil matters. Rashema may be contacted via email rashema.gmorgan@gmail.com or telephone 876-370-1915. This article is for general information purposes only and does not constitute legal advice.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaperlive


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT