How to Calculate Land Value of Property?

Wondering, how to find the land value of a property? Let me tell you that calculating the land value of a property is essential for various purposes, including tax assessments and depreciation calculations. 

How to Determine Land Value of a Property?

The formula to calculate the land value is,

Land = Gross Development Value - (Construction + Profit + other costs like marketing, transactional fees. 

Now let us understand other factors,

1. Assessed Value:

• The assessed value is used for property tax purposes. It’s determined by local assessors based on factors like recent sales of similar properties in the area.

• To find the assessed value, multiply the market value of your property by the assessment rate (usually 80% to 90% set by local or state government).

1. Market Value:

• The market value estimates what a buyer would pay for your property.

• Unlike assessed value, market value considers features, recent sales, and market conditions.

• It’s not assigned by a municipality but can influence assessed value calculations.

1. Depreciation and Land Value:

• Depreciation applies to buildings and equipment, not land.

• To calculate depreciation correctly, determine the land value and allocate the purchase price between land and building.

• Use the assessor’s or appraiser’s opinion of land value and adjust for different timelines and methods.

I hope this helps you understand how to find out land value of a property.

Read More:

I learned how to determine land value of a property when I went last month to buy my new flat in Bangalore. The previous owner informed me that, you can manually calculate the value of your property in Karnataka using the following formula or by visiting the official Kaveri website:

Land

= Gross Development Value – (Construction Cost + Profit + Other Charges)

Moreover, I used the Kaveri website to calculate the value of my property. For your reference, I have included the step-by-step instructions below.

How to Find Out Land Value of a Property?

To determine a property's exact value, its market value also referred to as guideline value is computed. My previous owner said that it helps in making wise decisions when it comes to buying and selling real estate. 

The below steps I followed to determine the land guidance value in Bangalore in a few minutes:

• I first visited

  https://kaverionline.karnataka.gov.in/

  .

• Then, I scrolled down the cursor to the “Services for Guest User” section.

• There, I tapped on “

  Know Your Property Valuation

  ” and selected the “Basic Search” option.

• After that, I selected my district. Following this, I entered the first 3 letters of my area name and chose my area from the available lists.

• I selected my property usage type, total area, and measurement unit.

• Finally, I clicked on “Display Valuation” to get the accurate value of my property.

Alternatively, you can also follow the process mentioned by Tara above to know how to determine the land value of a property. I hope you found this answer helpful.

One of the finest methods of generating money is through investing in land. Due to its scarcity, land is always seen as a valuable asset.  You also need to understand how to calculate land value of property in India. Indian land can be valued in a variety of ways. 

How to find land value?

• Developmental Method of Calculating Land Value in India:

The developmental method is the first approach used in India to determine the value of the land. Here, the value of the land is determined depending on the development of the infrastructure or the value of the property. The residual land value method is another name for this approach. This method is used globally to determine approximations of land values in various locations. 

Here is how to calculate land valuation in India using this method

• Comparative Method to Calculate Land Value in India:

The easiest way to determine the value of land in India is by using the comparative method. The land in question is compared to comparable land in the same neighbourhood that has recently been sold, and the results of these comparisons are used to determine the land value.

Factors taken into consideration are as follows;

1. Age of the land

2. Condition of the land

3. Infrastructure development in the area (size of roads, connectivity, transportation availability)

4. Presence of amenities like schools and hospitals in the area

• Land and Building Method for Calculating Land Value in India:

This approach to figuring out the land value in India is fairly straightforward. Here, the land's worth and the building's value are determined independently. The total worth of the property will be the sum of these two figures. The cost approach method is another name for this strategy. 

• Belting Method to Calculate Land Value in India:

In India, the belting method is employed to determine the value of the land when there are several acres to be assessed. Suppose someone has 50 acres of land in a rural region. Even if the cost of one acre of land in that area of India is approximately INR 10,00,000,  all fifty acres cannot be priced equally. Here is where the belting method comes to help.

According to how near the road is, the plot is divided into three belts in this approach. The belt that is close to the road will be more valuable than the belt that is further away. 

• Guidance Value Method for Calculating Land Value in India:

Another straightforward way for determining the value of land in India is the guideline value method. Every government in the nation has established its own minimum plot guidance value. This rate is also known as the circle rate or the ready reckoner rate. The minimum value at which a property must be registered with the local municipal office is the guidance value. The taxes need to be paid for this rate of registration.

Depending on the sort of land you currently own or intend to purchase, you can use one of the five methods listed above to determine how to calculate land value of property.

Read More: