Overview of Property Valuation
Property valuation is a way of calculating out how much an area of land or a building is truly value. It encompasses the brand, the rights to the property, the copyright, the reputation, marketing and promotion.
Who Makes a Valuation of a Property?
In India, a property can be valued by a valuer or surveyor who has a professional degree from the Institution of Valuers. Before they can do the same, they must seek a licencing from the State body.
Most of the time, valuers work for the lender or seller who is paying for the acquisition. They make a report about the value of a property, complete with blueprints and photos, and provide the following facts:
- Location
- How many rooms
- Measurements and borders of the place
- how the property looks
- Structural faults
- Landscaping
- dangers and rewards, among other things.
Also, valuers are hired to figure out how much a property is worth based on its potential for development and to calculate the council tax and rating levels.
What are the things that affect how much a property is worth?
When figuring out how much a property is worth, valuers look at economic and social trends, environmental factors, and government rules. Some of the several things that impact how much a property is worth are:
1. Location
People may have met brokers who said that a building in a commercial or well-developed location was worth more than the same structure in a residential one. In the same way, properties on freehold land are worth more than leased holdings.
2. Amenities
People today opt for homes that have parking spaces, children's parks, swimming pools, gyms, community halls, and other amenities in addition to power, network coverage, water, and sewage. So, the value of a house relies on how comfortable it is and what facilities are available.
3. Structure
The price of a project relies on several things, such as the quality of the materials used, its size, the cost of labor, how long it will last, and so on. Also, the layout, design, roof coverings, kind of foundation, and height of a structure all have a big effect on the rate.
4. Infrastructure
When seeking to buy a home, investors think about how the infrastructure is changing. A gain in property value is close to highways, flyovers, train stations, airports, bus stops, schools, hospitals, entertainment centers, retail markets, and other day-to-day services.
5. Demand and Supply
The supply of a property has the opposite effect on how much people want it. That means that when the number of homes available goes down, their prices go up. Also, the demand is affected by any change in the number of people living in a certain area. A location that is getting more people may push potential investors away from a nearby area that doesn't have as many people.
6. Affordability
Affordability shows how housing prices, interest rates, and earnings are related. If any of these factors are too high in a specific location, people start seeking for a better way of life somewhere else.
Valuers utilise numerous ways to figure out the real rate of a property based on these elements and the country, region, city, and area.
