While planning to purchase a property, it’s necessary to understand the market value of the property so as there is no case of exploitation by the seller and the same is true while selling out the property as well, at that time one should understand the market value so that good return can be received from the property.
According to the financial expert Ajay Shah, if someone was supposed to fit 1.2 billion people in just a 1000 sq. ft house meant for a family, where two members of the family are workers in an office or a factory space of 400 sq.ft., then approx. 1% of India’s land area would be required, assuming an FSI of 1.
Thus, it’s not the shortage but instead the human inclination to remain in proximity to one another that leads to value appreciation of land in specific areas of the country. This conclusive factor is behind each well-known method adopted to reach a land valuation in India.
To make the survival easy in the real estate market there is some trick on how to calculate the market value of the property:
It is used to reckon the market value of ready apartments. Following is the method to calculate the correct value of the market of the property:
It is used to reckon the market value of a property that is under construction. Following is the method to calculate the correct market value of the property:
It is used to reckon the market value of rental residential and commercial properties. It is necessary to determine the property value before it is put on rent.
While calculating the Valuation of the Property, the following things shall be taken into consideration
The market price of a land parcel can be calculated given a few key facts, without even actually visiting the property. The elements that decide the market cost of land or property are the supply and demand, the state of the property, and past exchanges for similar properties.
The market price and the market value of land are not indeed the very same thing. The market price of land is the amount that the proprietor will sell his property for, in the open market.
The market value of the land is reflected in how much this land is worth, particularly according to forthcoming purchasers when contrasted with its cost.
So next time you think of buying or selling any property, do consider these tips to better understand the market value and its importance so that you get a good return on your property.