Whether it’s financing, investment analysis, sales listing, property insurance, taxation or anything else related to the real monetary value of your property, estimating the actual market value of your real estate property is of utmost importance. And this is what is called Property Valuation. However, in India, the most practical use of property valuation comes into the picture when you’re looking to sell or buy residential properties in India, or any property for that matter – Commercial, agricultural property, special use property, industrial property, etc.
In this blog post by Indian Estate Group (IEG), India’s top-rated Real Estate Company, we will dive into understanding the intricacies of property valuation, and the top 7 things you should know about as someone looking to venture into the field of real estate. So, let’s get started.
Top 7 Aspects of Property Valuation by Indian Estate Group (IEG)
1. Location is of Utmost Importance!
You might have already heard it a thousand times before, but we’re repeating it again – The location of your real estate property is the single most important factor affecting your property valuation. If your property is in proximity to basic amenities like schools, hospitals, shopping malls, and is well connected to different modes of public transport, it can significantly give a boost to your home’s worth when it comes to the property valuation process. However, it’s not just only about convenience, the overall desirability and growth avenues of your property’s surroundings also play a major role. Therefore, before you make a real estate-related purchase, take your time to research the area thoroughly thinking about its future growth prospects.
2. Space and Layout Related Factors
When it comes to property valuation, it is not only about square footage that is considered but also the way a home’s layout is designed that can have a significant impact on its value. Generally, open floor plans are much more efficient and make use of the limited space more judiciously, offering a sense of openness and flexibility. Additionally, the number of bedrooms, bathrooms, etc. is also a major consideration, as bigger joint families or those who have frequent guests coming over prioritize bigger and more spacious accommodations.
3. Your Property’s Age and Condition
Typically newly constructed properties command a higher price than an old property, however, a well-maintained old home can also be a worthwhile investment, sometimes even more than a new property due to its unique character, charm, location, amenities, etc. Added to this, the condition of the property, including but not limited to the need for repairs or renovations, is something that can’t be overlooked and impacts its value when it comes to property valuation. Regular maintenance and upgrades can help, and even enhance your property’s value over time.
4. Comparable Sales do Matter!
When it comes to determining a property’s fair market value in the realm of real estate, real estate professionals typically rely heavily on comparable sales, or “comps”. Comps are the recent sales of similar properties in the same area, generally taking into consideration things like size, age, condition, and amenities, etc. of your property. Thoroughly analysing comparable sales provides you with invaluable insights into the present market trends and current pricing, allowing you to get a better understanding of what your property is actually worth in today’s time.
5. The Neighbouring Factors
Today, it’s not just about the property itself, it’s also about the surrounding neighbourhood that can be a make or break when it comes to your property valuation. Crime rates, school district ratings, access to parks and recreational facilities, and the overall desirability of a certain area are some of the elements that can impact your home’s worth when it comes to property valuation. The neighbourhood in which a property is located can have a significant impact on its vibe and character, and subsequently its value
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6. The Economic Forces of Demand and Supply
The real estate market in India, just like any other market is subject to the laws of demand and supply. In areas with higher demand and lower inventory, property values generally tend to rise. On the other hand, a rise in the supply of properties can lead to lower property valuation when you’re on the lookout to sell your home. It is imperative that you keep an eye out on market trends & the demand and supply in real estate to maximise your investment.
7. Property Taxes
Property taxes can vary greatly depending on the location and the assessed value of the home. Higher property taxes can offset some of the potential gains in a property’s value, while lower taxes can make a property more attractive to buyers and potentially increase its worth. It’s important to factor in property tax rates when assessing a home’s true value.
Wrapping Up
Navigating the world of property valuation can be complex, but armed with the right knowledge, homeowners can make informed decisions and maximize the value of their investment. By considering factors like location, size, condition, neighbourhood characteristics, market trends, and unique features, you’ll be better equipped to understand your home’s true worth. Remember, staying up-to-date with market trends, maintaining your property, and seeking professional guidance when necessary are key to unlocking the full potential of your most significant asset.
Need professional help in the property valuation sphere? Look no further than Indian Estate Group (IEG). Indian Estate Group’s professional property valuation experts can help you get the best value for your money when it comes to real estate investments. So, what are you waiting for? Connect with them today and get ready to experience real estate excellence.
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