Property investors always struggle to zero-in on the actual ‘value’ of a property in which they are looking to invest in. There is always a lingering doubt over valuation of a property like an independent house or a piece of land. They invariably are saddled with doubts on condition of the investment, growth of the investment, importance to the property in future, demand of the property in future etc.
To allay such doubts, an approximate estimate from a valuer goes a long way. Valuers help do property diligence for enterprises like banks, finance units and the other government and private enterprises for deciding the rate of the property in the area. It gives investors a clear idea of the property and the rate in the area.
Often enough, loans for the property are given by financial institutions based on the reports from empanelled valuers. These institutes don’t provide loan at your buying cost. It would be better to get the approximate cost of the property in which you would be investing.
A valuer should be registered with the Income Tax Department and other institutions. They should also be a civil engineer or with sufficient experience in the sector. To come up with accurate estimates, valuers should visit the site and have to submit a report signed and verified. The valuers may charge a bit more but it is nothing when compared to the investment to be made, and the fee structure of the valuer depends on the distance of the property from work place, type of property, cost of property etc.
Some of the factors that are taken into consideration by a valuer include demand and supply of the property, nature of the property, government rate in the area, type and quality of construction, property terrain, investments made in the area, agriculture and non agricultural, necessary facilities availability, connectivity (transport ), location of the property, municipal sanctions and permissions, sale deed and agreement of sale and facilities in the society or colony.
An example: How does a valuer come up with the valuation of a deluxe two bedroom flat, which is ten years old apartment in Begumpet area?
For a 10 year old flat in Begumpet with good connectivity, good quality of construction, with 24hrs available water, lift facility, 1,000 sft, with land cost of Rs 50,000 per square yard, valid sanction plan and BRS done, with a single parking and 25 ft road with no interior wooden work.
The cost of undivided land share is calculated with rate, the construction cost is taken and other costs like parking are to be taken and age of the building is considered and cost is reached. Such a deluxe two bedroom flat would cost about Rs. 50 lakh.
Published - August 14, 2015 05:44 pm IST
