Property valuation is a real estate service that is very popular in the West. Thanks to its benefits, the Indian real estate market is also slowly embracing the service.
Property valuation is a method of precisely analysing the value of any property. Property or house valuation experts start by visiting the premises and taking notes of core details of the property. They consider various factors and existing data and give you a comprehensive property valuation report that you can use whenever you want to sell, lease, or take a loan against your property.
It is now effortless to opt for online property valuation services and get your property in any part of the country valued by top experts in the field.
Why is property valuation important?
There are different scenarios in which property valuation and the report generated become very important.
- Let's say you want to sell your house. You consult friends and family and decide on a selling price for the house. Your buyers are not convinced with the cost and ask you to bring it down. How do you know how much to negotiate? A house valuation report will give you an exact idea of what the house is worth at that point. You can keep this as a reference and negotiate.
- Consider another scenario here. You are planning to buy a second-hand flat. You want to know how much the flat is worth before making such a significant investment. Getting a flat valuation done will bring you peace of mind and help you decide on the right buying price.
- You may also need a property valuation report if you decide to get a bank loan or mortgage your property.
- Property valuation helps you understand any additional expenses you may incur, including taxes, registration charges, and stamp duties.
Different valuation methods
Evaluating a property involves a lot of factors. They might include safety issues, ease of commutation, the comforts the property offers, proximity to major locations, and quality of the structure. Some properties built beautifully on large plot areas may be valued less because of their location, while small buildings in the heart of the city may be valued more.
Buildings near infrastructural developments, SEZs are valued more while properties in locations branded unsafe may have lower valuations.
Once you decide to get a property valuation done, the evaluator may use one of the below methods depending on the type of property, its location, and its intended use.
The comparison method is used when you are planning to buy a property with the intention to stay in it. Here, the evaluator compares the current market value of properties and plots in that region and uses it to create a valuation report. This is one of the most commonly used home valuation methods.
If you want to buy, rent, or lease a property to run a business there, then the property's value needs to match the gross earnings and help the business take home profits. Therefore, the evaluator will calculate the property's capital value based on the gross revenue and working expenses.
In case there are no comparative property prices or valuations available, evaluators will use the costs method for house valuation. Here, they will analyse the average cost of buying a land and building a similar property in that area and use that as a comparison to evaluate the property.
The residual method is used for properties that are bought with the intention of renovating or making changes to increase the value of the same. Most developmental properties and those bought as investments are valued using the residual method. Here, the value of the property is calculated, keeping in mind the possible profits it may reap in the future.
Who should avail property valuation services?
The following are the kinds of people who will need to opt for home valuation services.
Seller – If you want to put a particular property up for sale, it will be a very smart move to get the help of an expert who can create a property valuation report. With this, you will know how much the property is worth and can avoid underselling it. Your buyers cannot low-ball you as you have professionally calculated values in hand.
Property investor – If you are a property investor, then online property valuation services will help you identify properties that are worth your money. Check the valuation report for the current prices and future trends.
Property taxpayer – As a taxpayer, do you feel you are paying more property tax than your neighbours? A valuation report can give you the correct figures and reduce the tax burden.
Buyer – If you are a buyer, then it is very important that you know if the property you are spending money on is worth the financial commitment. You may also need the valuation report to get a bank loan.
Businesses – Businesses that plan to expand their bases need the right location. What would happen if the rent, lease, or mortgage you end up paying for the space causes a cash crunch every month? Prevent this by getting a profits method valuation done.
Experts from Askaan offer end-to-end property valuation services and ensure your money is invested in the right place. Here are some of the services offered.
Property evaluation and inspection – Experts will carefully measure the plot area and the building and include relevant images with these measurements. They will then assess other details like property condition and quality of fixtures, amenities, flooring, roof, walls, and overall construction. They also identify additions like parking space and landscaping and use an in-house building valuation calculator to make the right assessments.
Location assessment – This will include a thorough inspection of the location, its proximity to the major landmarks nearby, number of educational institutions and hospitals around, the scope of entertainment, safety and security issues, and circle rates.
Recommendations and final report submission – Askaan' experts will offer their recommendations in terms of property value and prospects. They may advise you to buy or sell, invest in renovations if needed, or look for better options. The final online property valuation report will include a detailed analysis of the property in writing.
Wherever you decide to invest in a property in India, do not take the next step without proper valuation done. Property valuation has become a norm in most countries, and awareness is slowly building in India too.
You could be a buyer, a seller, a lessor, or a lessee. In any case, knowing the current value of a property through property or house valuation will help you fix costs and rates right. If you want a property to be valued, then get in touch with Askaan right away. The process is simple, and you can get expert help right away.