Property valuver

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Property valuver

The statement "property value is more than details" can be interpreted as highlighting that a property's overall market value is a comprehensive estimation influenced by numerous complex and sometimes abstract factors, transcending a simple list of specifications. While details are important inputs, the final value is determined by the dynamic interplay of market forces, expert analysis, and a broader context. 

Property valuation is a fascinating and often intricate process that goes far beyond merely counting the number of bedrooms or measuring square footage. It is an art and a science, relying on a holistic view of the asset within its surrounding environment and current economic climate. The "overview" perspective recognizes that the whole is greater than the sum of its parts, integrating both quantitative details and qualitative, external factors to arrive at a fair market value. 

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What is a Property

A Property Valuer is a person authorized to assess the monetary value of immovable property, such as:

· Land

· Residential property (house, flat, villa)

· Commercial property (office, shop, mall)

· Industrial property (factory, warehouse)

· Agricultural land

· Special properties (hotels, hospitals, schools)

The valuation is done objectively and scientifically, not on guesswork.

Types of Property

A property valuer uses different valuation methods, depending on the property type and purpose:

1   ️Market Comparison Method

·         Compares similar properties sold recently

·         Most common for residential & commercial properties

2   ️Cost Method

·         Land value + construction cost – depreciation

·         Used for new buildings or special properties

3    Income Capitalization Method

·         Based on rental income

·         Common for commercial properties

4    Development Method

·         Used for land with development potential

5    Residual Method

·         Used in builder/developer projects

 Valuer?

Property Valuation Process

1.  Defining the Purpose: Determine whether you need valuation for selling, taxation, loans, or investment planning

2.  Hiring a Valuer: Engage a certified property valuer to assess your property based on market trends, condition, and legal aspects

3.  Property Inspection: The valuer inspects the land area, built-up space, location, and overall condition – to determine its worth

4.  Data Collection & Market Analysis: Recent sales, demand, and infrastructure developments in the area are analysed to estimate market value

5.  Applying the Valuation Method: The valuer uses approaches like market comparison, cost method, or income approach based on property type

6.  Generating the Valuation Report: A detailed report is prepared, outlining the property’s assessed value and justifications

Common Mistakes

    1. Ignoring Market Trends: Property prices fluctuate, so relying on outdated data can lead to incorrect valuation

2.  Overlooking the Location Factor: Connectivity, infrastructure, and neighbourhood facilities significantly impact property value

3.  Misjudging the Impact of Property Condition: A well-maintained property holds more value than one requiring major repairs

4.  Relying Solely on Government Guidance Value: Circle rates are usually lower than market prices, leading to undervaluation

5.  Overestimating Renovations and Additions: Not all upgrades increase value, especially if they do not appeal to buyers

Conclusion

Real estate valuation ensures you buy, sell, or invest with confidence. By considering key factors, using the right methods, and avoiding mistakes, you can determine an accurate market value. Precise valuation helps in setting fair prices, securing loans, managing taxes, and taking informed investment decisions.

More Details

Validity of Property Valuation Report
·         Legal & tax purpose: As per authority requirement
A Property Valuer is a licensed expert who determines the true value of property for legal, financial, and tax purposes.
In India, valuation must be done by an IBBI Registered Valuer for official use.

FAQ

  • What is property valuation, and why is it important?

    Property valuation is the process of determining a property's fair market value based on factors like location, demand, and condition.

  • What factors influence the valuation of a property?

    Factors that influence the valuation of a property are location, property size, condition, market demand, infrastructure development, and economic trends.

  • What is the difference between market value and circle rate?

    Market Value: Actual price property can fetch in open market Circle Rate: Minimum value fixed by State Government for stamp duty Valuation usually considers both, but market value may be higher.

  • Does property age affect valuation?

    Older properties face depreciation, reducing value unless land value compensates.

  • Is valuation same for sale and bank loan?

    Sale value: Market-driven Loan value: Conservative (bank safety margin)

  • What is realizable value?

    The amount expected if property is sold within a short time period.

  • Is GST applicable on property valuation services?

    Property valuation service attracts GST @ 18%.