Have you ever been stuck to find the exact property price, or missed recognising an undervalued property, or maybe bought at an overpriced value?
If yes, then you are at the right place. This could help you calculate the property valuation as per the current date. Make sure to read it till the end to learn how to do valuation of property.
I’ll try to explain everything in layman’s terms so everyone visiting/Reading this would be able to understand it.
SELL OR BUY AT RIGHT PRICE
OVERVIEW:
Considering we want to valuate the property, we need to have the following data i.e Area of plot, built up area of the House/Villa.
Note:-Built up area is the area that is covered by the house.
Valuation of land:
To find the price of land you need to compare the prices of land in that area by self-surveying around the area, or else you can find the price on the online brokerage app.
The price of land in the same area would more or less nearly be the same, provided comparison is carried out between similar type of land. The average of above 3-4 prices can be Considered as the price of land.
Now coming to price of structure or Villa:
Its price entirely depends on how much it would be required to construct a similar of that in today’s time.
To get the exact price you need to enquire with contractors, he’ll give per sq.m cost of the house, and that cost per sq.m multiply by the area of the house would give you the exact price of the house. This final value is the amount you’ll require to construct a new similar house.
In the case of Multistorey Apartments consider the floor area of entire Apartment . i.e add floor areas ( G.F + F.F +S.F +……)
real calculation considering current rate in my vicinity:
We have the following property data:
Plot area= 300 Sq.m (Plot type : N.A)
House(G+1): Ground floor area: 110 Sq.m
First-floor area: 70 Sq.m
Solve:
As per the preliminary survey current plot rate is= 10,000 Rs/- per Sq.m
After enquiring with the contractor we arrived at a construction cost of= 20,000 Rs/-Sq.m
Cost of land= 10,000 X 300= 30,00,000/-
Cost of structure/House= 20,000 X (110+70) = 36,00,000/-
The above cost of structure should be depreciated as follows:
Period of life of structure= 50 years
Used period of structure=10 yrears
Depreciation factor =1- (10/50)=0.8 Depreciation factor = (1-(used period/life of structure)
Depreciated Value of House=36,00,000 X 0.8 = 28,80,000/-
Final Value of Property= 30,00,000 + 28,80,000 = 58,80,000/-
To calculate the estimate for new construction there’s no need to consider the depreciation factor. Although there are many factors that come into consideration for valuation, but Above method would be enough to give you a rough estimate.
The factors linked with valuation’s are property type & location because prices differ largely on location and type base. So make sure you considered them while analysing.