How to carry out a valuation of your property by Kelly Fatchna


Homeowners who decide to self-assess the value of their homes must be aware of several considerations if they're to avoid any penalties.
While households around the country are soon to receive letters from Revenue detailing how much they'll have to pay in property tax many homeowners may still be wondering on the best way to carry out a valuation of their property.
Homeowners who decide to self-assess the value of their homes must be aware of several considerations if they're to avoid any penalties.
With this in mind the Society of Chartered Surveyors Ireland (SCSI) urged homeowners to ensure that they are fully informed when self-assessing the value of their home for property tax purposes and outlined their five tips for deciding on a valuation.
1. Determine the market value of the property
Any house, apartment or lodge which is habitable and which could be sold separately will be subject to the tax. The market value of the property must be determined as of May 1 and will form the basis of the annual charge for 2013-2016. Any home improvement changes or increases in property prices during this period will not affect the property tax liability. Be aware that homes in rural areas are likely to prove more difficult to value than those in urban areas.

2. How to Value your Property
The valuation of residential properties is generally done through direct comparison, i.e. if an identical house on the same road recently sold for €400,000 then the value of the house being valued will most likely be €400,000. All house price sales from 2010 are listed on propertypriceregister.ie
Other resources included the property portals such as myhome.ie and daft.ie. These websites are useful because the information from the property price register is placed on maps, making it easy to identify where the most recent homes have sold relative to the home being valued.
3. Analysing Comparable Information
It is very unlikely that a home identical to yours will have been recently sold so some analysis with adjustments to reflect the differences in size, location, condition and date of sale will be required. There is no strict rule on how to draw comparison from nearby sales but adjustments to the values achieved will rely on considerations such as location, size, layout, condition, etc. It is worth noting that the responsibility still rests with the owner to have a correct valuation. If the valuation advice provided is incorrect then it is the owner who is liable for fines / penalties. Landlords should be aware that the Local Property Tax is not deductible for tax relief
4. Ensure your property value is in the correct band
There are 20 valuation bands, starting from €0-€100,000 and ending up at values greater than €1m. In determining the amount to pay, Revenue has a calculator available on its website revenue.ie For valuations over €1m, a precise valuation is required by the Revenue Commissioners in order to accurately calculate the Local Property Tax due.

5. Filing Local Property Tax Returns
Payments can be made by bank transfer, or by monthly direct debit, or be made online for which there is an extended deadline of May 28. Another option is to have the tax deducted as source by your employee.

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