Overview

It is very important for you to have a market valuation plan, when you are selling, buying or assessing the worth of your property. In today’s real estate market, it is mandatory for you to assess your property valuationaccurately. We at Your Property Doctorprepare market valuation plan effectively.

Various Steps Involved in Property Valuation Process

Collecting Essential Documents

Before a property valuer comes, collect all your relevant documents related to your property. These documents include building plans, property tax receipts, property title deed, recent utility bills and any improvement or renovation records. Keeping these documents handy will accelerate your property valuation process and ensure its accuracy.

Cleaning and Organizing

“First impression is the last impression” is an old quote that you must have heard. This is applicable in determining the market value of your property. So, make sure that your property is free from clutters and is presentable to the buyer. In addition, address small repairs, such as repairing cracked windows, fixing leaky faucets, etc. Doing these things will cast a good impression of your property on your property valuer and help them in property price analysis.

Research Recent Sales

Before the valuation of property, research recent property sales done in your neighborhood. Doing this will give you valuable insights into current real estate market trends. Although property valuers use their knowledge and expertise, your knowledge about the local market can be a helpful reference to them.

Be Honest and Transparent

When the valuation process is going on, be honest and transparent about any defects or issues your property may have. Hiding problems can lead to inaccuracies in the valuation of the property and eventually result in legal issues in the future.

Show Improvements

If you have upgraded or renovated your property, tell the valuer about it, as these improvements can positively impact your property’s value.

Stay Updated

Always stay updated about the property market trends. Knowledge of factors that affect property values, such as government policies, property development strategy, demand in specific areas, and infrastructure development can be advantageous for you.

Put Up Questions

When the valuation process is going on by the valuer, feel free to put up your questions. Ask them about their experience, methods used by them and how they review specific factors that affect the real estate market.

Hire a Reputed Valuation Company

Hiring a reputed valuation company can serve your purpose. Such a company has experienced valuers, who are familiar with the local market nuances. Going through reviews and asking for recommendations can help you in property investment planning.

Briefly put, property valuation involves many things—choosing an organization, transparency, and local market knowledge. By following the steps mentioned above, you can have an accurate valuation of your property, whether you are selling, buying or assessing your property’s worth in the real estate market.

• Size and Layout: Larger buildings have higher values than smaller buildings. Layout efficiency also plays an important role in determining the value of a building.

• Condition: If the building has undergone recent improvement and does not need any repair and renovation, then its value will be higher than those buildings that need upgradation.  

• Age and Architectural Style: The less old building, the higher the price. In the same way, architectural style also plays an important role in increasing the value of a building. Modern architecture have higher value than ancient architecture.  

• Market Trends: Since real estate market is fluctuable, it can impact the valuation of a building.  

How to Calculate Building Valuation?

The current valuation of a building is calculated using the following methods:

Plinth Area Measurement Method

Plinth area measurement methodis easier than otherbuilding valuation methods. It involves the measurement of the plinth area and calculating the plinth-area rate for a similar building in the same location. Then, the cost of calculated.

Detailed Measurement Method

If the original record of the building is unavailable, the construction cost is calculated using a detailed measurement method for valuationand making a bill detailing the quantities for each work item.

Cost from Document Records

Current-day rates of materials and labor, bills of quantities, and estimates are used to calculate the cost of construction. If the construction cost is known, this cost is modified, using the percentage increase or decrease in the current day rate for labor and materials.

What is the Purpose of Building Valuation?

Sales and Purchases

As a seller, you can fix a reasonable price for your building. If you are a buyer, it can help you inform others.

Financing and Refinancing

If you are a lender, building valuation for financing can help you determine the loan amount that you can offer.

Taxation

Property taxes are based on the assessed taxation and building valuation

Insurance

Building insurance valuation helps insurance companies to ensure your proper coverage.

Development Method: In this method, the price of the land is calculated after considering the scope of development of the area. This helps in making a better buying decision.  

Comparative Property Valuation: In this method, the value of the similar property in the same locality is calculated. There can be variations in the property price on the basis of direction, size, interiors and legal issues.  

Land and Building Method: Under this method, the value of land and building is calculated separately. Then, these two values are added to calculate the land value. Other factors are also considered.