Why there is need of property valuation to find out property’s price?

The important process that is called as the property valuation process is considered as the essential one to perform the process. Because by doing such steps the person needs to know the exact idea of the house condition and they can take the necessary action on their house to make it more improved and this explains the question that How is real estate valuation done?

Aggravating the US situation is a patchwork of state regulations, the partial deregulation of the energy industry in several states including California, which suffered a massive shortage in 2001, and the debacle involving Enron and several other energy companies that sought to become energy traders. In this environment, office occupiers can no longer afford to take a stable supply of power for granted. Balanced against these problems, however, is a budding economic recovery that promises to boost demand for office space across the globe.

While the take-up of excess space will require from one to five years depending on local conditions, the market finally seems to have passed its low point and embarked on a recovery, however sluggish. It is worth noting that pessimists sounded many of the same warnings in the early 1990s, suggesting that the developed world would not need any more office space for the balance of the decade. That proved to be untrue. Office demand returned to normal levels, and vacancy rates were falling even before the technology bubble inflated demand to unsustainable levels. The recovery of the world’s office markets will proceed at a slow pace, but it will proceed, abetted by stronger economic growth in 2004. Recession and recovery always have been and will continue to be the nature of the office market.

The US office leasing market turned in a lacklustre performance in 2003, as expected. Most indicators deteriorated as the year progressed. The vacancy rate ended the year at 17.6 percent, up from 17.4 percent at year-end 2002 but still below the peak of 18.0 percent at the end of the last recession cycle in 1992. Rental rates extended their multi-year slide, with the average asking rate for Class A space slipping another 5.4 percent.

The volume of leasing activity is declined again as new leases took a back seat to lease renewals and short-term extension. The average lease term remained below 60 months throughout the year held down by the number of lease extensions. The average lease size stayed unusually low as large corporate tenants continued to shed space. The average time on the market for direct lease space rose to 13 months by year-end 2003 compared to 9 months at the end of 2002. And commercial mortgage delinquency rates were slightly elevated compared to their nadir late in 2001 but held well below their levels of the early 1990s.

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