Know how property valuation in India can help Property management is not that difficult!
Know how property valuation in India can help
Property management is not that difficult!
Owning a property is like having a security for the future. The security could be in the form of having a roof over one’s head, basic amenities and also back up for any future uncertainties. But for using a property as a security for any life issue, it is crucial to know the value of such real estate. Therefore, the owner must get the property valuation done.
Property Valuation is the process which evaluates the economic value of real estate i.e. the market value of the property. Various factors affect the evaluation process such as market forces – demand and supply, type and size of the property, location, quality of construction, amenities, structural condition and recent sales of similar local properties.
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How does the valuation of Property help?
- Property Valuation helps you sell your property at a fair price i.e. it becomes a helpful negotiating tool.
- It may also assist in setting up an appropriate rental amount.
- When you want to use the real estate as a security against bank loan, the approval process of loan might be faster and smoother if you have property valuation certificate.
- Many banks have now made it compulsory to have valuation certificates while issuing loans using properties as security. Having a certified value may also help the owner to get a higher amount of loan sanctioned.
- It also becomes imperative in circumstances where the accurate value of the estate has a legal bearing such as family settlements, insurance paper, mortgage lending, a will statement, business balance sheets, land acquisition cases, etc.
What do you mean by property’s market value? How is its stamp duty decided?
- Market Value of the property is the maximum estimated amount that a property can command on the open market. It is the highest price that a seller would accept from the buyer in the competitive and open market.
- The stamp duty on such property is based on the agreement value or markets value of the real estate whichever is higher.
What do you mean by Leasehold Property? Should one convert a leasehold property to a freehold one?
- When a property is given on lease to another person (lessee) for a particular period by the owner (lessor) of the property, such asset is known as Leasehold Property.
The ownership of the real estate remains with the Lessor, and a certain amount is fixed as lease premium and annual rent.
- Yes, one should convert a leasehold property to a freehold one.
A freehold property can be mortgaged, sold or has kept for standing security and it also has better marketability, which is not possible with leasehold property.
What does property valuation certificate include?
Property Valuation Certificate usually includes photographs, title deed information, zoning information, municipal information; lease details, description of improvements, location and surrounding area, macro and micro economic market conditions and method of valuation used.
Property Valuation is a way of knowing what the worth of the property is. It comes in handy to have the valuation certificate in case of emergency or at the time of selling the property.
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