How to Calculate Market Value of Property?

When you are planning to buy a property it is important to know the correct market value of the property so that you won’t get exploited by the seller and the same condition applies in case when you are in the market as a seller to sell your property. At that time also you should know the correct market value so that you can earn good returns out of the property. To make your survival easy in real estate market I have shared the trick  how to calculate market value of property: There are majorly three types of property valuation methods:

• Fair market value also known as sales comparable method:

This method is used to calculate the market value of ready to move apartments. Method how calculate fair market value of property:

• Check the property prices of neighbouring properties.
• Calculate per sq.ft. rate of a raw property.

For example You want to calculate the value of 3 BHK flats in Delhi Sarita Vihar , 1800 sq. ft is a super built up area. Rate is 72 lacs. Rate( Rs./sq.ft)= 72000000/1800 = Rs 4000 per  sq.ft

• Once you calculate the value of the property and if your property is located somewhere near to the bus stop, metro station, park, floor of the property for that you can add a premium amount before sale of the property.
• If you are selling the furnished property you can depreciate the prices of the goods and then you can add the lump sum amount to the value of your property.
• If your property is constructed as per the vastu guideline you can add as amenities amount to the value of your property.
• Land and building valuation 

This method is used to calculate the market value of under construction properties. Here is how to calculate the market value of a property through this method:

• Calculation of per sq.ft of land, cost of building construction.
• Formula to calculate Land and building  market value:

Capitalized value = Net income x Year’s Purchase value

1. P. value = 10/100 = 100/10 = 10

Capitalized value = 10,000 x 10 = Rs. 1,00,000/-.

• Value of a building depends on the cost  used during the construction process. For example cost will differ from raw materials from quality to quality such as fooling/tiles comes in many price ranges.

• Rental method of valuation

This method is generally used to calculate the market value of commercial properties and for residential rental properties. It is important to calculate the valuation of the  property before putting it on rent. If you are becoming a landlord for the first time make sure to calculate the rental value.

• To make your market price research easy you can get in touch with Nobroker property management 

• Rental value=  Annual Rent /Property value.

For example you have a property in Indirapuram, Ghaziabad. You charge 30,000 rent from your tenant and the market value of your property is 1cr. Rental value formula ( 30000 multiplied by 12/ 1cr = 3.6%) Although above mentioned methods are the most common ways to get valuation of a property, here are some other ways to calculate market value of the property; Valuations based on cost, Development method of valuation, and Depreciation method of valuation. I hope now you know how to calculate market value of property through Fair market value, Land and building valuation and Rental method for valuation of properties.

Are you struggling with how to calculate market value of property? Determining the market value of a property in India involves several methods, each suited to different types of properties and situations. Scroll down to get the different methods.

How to Calculate the Market Value of a Property?

Here are some common approaches:

1. Sales Comparison Approach (Comparable Sales):

   • Look at recent sales of similar properties (comps) in your area.

   • Calculate the average price per square foot of these comps.

   • Multiply this average by the square footage of your target property to estimate its market value.

2. Income Capitalization Approach (for Investment Properties):

   • If the property generates rental income, use this approach.

   • To know how to find fair market value of property, estimate potential rental income and apply it to a capitalization rate.

3. Equity Approach (for Large Properties):

   • The belting method is commonly used for large urban properties.

   • Separate the value of the land and the building on the property.

   • Combine these values to estimate the overall market value.

Moreover, you can hire a professional appraiser to assess your property. He will consider various factors, including property condition, location, and recent sales.

Remember that your property values can fluctuate based on demand, economic conditions, and local trends. I hope you get an idea of how do you find fair market value of property.

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Read more

How to calculate resale value of flat in Bangalore?

 

Wondering how to find fair market value of home? To calculate the market value of a property, you can use the following method.

How to Determine Fair Market Value of Home?

1. Collect Data

   : Know your property’s location, type (residential, commercial, etc.), and size.

2. Find Comparable Sales

   : Look for recently sold properties similar to yours.

3. Calculate Benchmark Value

   : Multiply the average price per square foot of comparable properties by your property’s total square footage.

How to Calculate Market Value of a Property Using a Formula?

The formula for market value is:

Market Value= Average Price per Sq.ft. of Comparable Properties×Sq.ft. of Target Property

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

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Read More:

What is the Fair Market Value of a residential flat?

 

Hello, I recently invested in a plot in Delhi. I was looking for a property value calculator that could help me with the price of the property. I found a useful one after some research. Let me share that with you!

Method for property valuation calculator

Residual Value Process:

This methodology works in generating the rate of development lands. This is ideal for developers, builders and people who are looking to purchase land as an investment.  This is also known as the development method because the valuation of the property is figured out based on the developments in and around the area. 

The formula for the residual land value = Total Development Price - (Cost of Construction + Fees + Earned Profit)

• Total Development Price:

  This figure includes the earned profit. It is the complete cost of development done on the land. It can be determined through the analysis of interest rates, current market trends, and the cost of development.

• Cost of Construction:

  This is the complete cost of constructing the project or the entity. This comprises factors such as infrastructure, materials, land entitlement, etc.

•  

  Fees:

  This accounts for all the incurred fees such as the financing expenditure, loan origination fees, architecture fees and any other applicable fees during the development process.

• Earned Profit:

  This is the profit gained out of all the development activities over the land. For a builder, this can be the sale of an apartment in his housing society project. 

Ashwin, Tousif and others have stated a few useful ways for property valuation calculator free. You can refer to those answers by scrolling through the page.

I hope this helps you with the property value calculator India.

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Read More How to Calculate Commercial Property Tax  Can I buy commercial property by selling residential property?

Calculating the market value of a property typically involves considering several factors and utilizing various methods. While the exact approach may vary depending on the location and type of property, here are some common steps involved in determining the market value:

1. Research comparable properties: Look for recently sold properties in the same area that are similar in size, condition, age, and features to the property you are assessing. These comparable properties, also known as "comps," provide a benchmark for estimating the market value.
2. Assess property characteristics: Evaluate the specific characteristics of the property, such as its size, number of bedrooms and bathrooms, lot size, amenities, condition, and any unique features it possesses. Note any upgrades or renovations that may affect its value.
3. Consider location factors: Location plays a vital role in property value. Evaluate factors such as the neighborhood's desirability, proximity to schools, transportation, amenities, crime rates, and overall market trends in the area. Location-related factors can significantly impact the market value of a property.
4. Review recent sales data: Analyze recent sales data of similar properties in the area to understand the current market conditions. Look for trends and patterns in terms of prices and how long properties are staying on the market.
5. Use valuation methods: There are various valuation methods you can employ to estimate the market value. Some common approaches include:
   • Sales Comparison Approach: This method involves comparing the property to recently sold comparable properties and making adjustments for any differences to arrive at an estimated value.
   • Income Approach: Primarily used for commercial properties or investment properties, this method calculates the value based on the property's income-generating potential. It involves assessing the rental income and applying a capitalization rate to determine the value.
   • Cost Approach: This method determines the value by assessing the cost to replace the property, factoring in depreciation. It is more commonly used for unique properties or when there is a limited number of comparable sales available.
6. Seek professional appraisal: If you require a precise market value or need an appraisal for legal or financial purposes, consider hiring a professional appraiser. Appraisers are trained to evaluate properties and provide an unbiased estimate of market value based on thorough analysis.

There is no such market value of land calculation using which you can get the market value of a property. We were also struggling to fix a price for our 3 BHK property in Bangalore. Without knowing its value, nothing could have been done. I researched about how to check market value of property and came across these answers. They were indeed helpful. You can try implementing them but I used another method. Let me share that here.

How to find the market value of a property?

To know the market value of a property, you will first have to

• The per sq foot value of the properties in that locale where the property is located

• Find out what more or fewer amenities it has than the neighbouring properties

• Property’s age

• Demand for properties in that area and more

What I did was, I looked for properties in my area in NoBroker. For example, my property is located in Whitefield, Bangalore. In order to know the value of my property, I checked out similar properties in that same area and then came to a price. I will suggest that you do the same. This will give you a clearer idea. 

You can also consult with a broker to know the property rates in your area, but the problem is that they might be lying. 

So to do the market value of land calculation, first try to extract as many details as you can about similar neighbouring properties, and then set up your property’s price. 

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Read More:

How to find out the market value of land and building How to find market value of land in Tamil Nadu? How to find guidance value of property in Bangalore?

The importance of a property's market value will be understood by you if you have ever attempted to buy or sell a home. The market value is the amount that a property might trade on the public markets in a typical situation. It is important to both those who possess property and those who are responsible for paying taxes on it. There are some useful ways to calculate the market value of the property. So let’s take a look at how to do market value calculation of property.

Know about the market value of the property from the professionals at NoBroker. Sell your property at profitable rates by opting for NoBroker seller plans.

How to calculate property valuation with the belting method?

The belting strategy is introduced to determine the value of a sizable land piece in metropolitan areas. The entire piece of property is divided into three belts, with the portion nearest to the major road receiving the most weight. Both the front belt and the secondary belt may extend up to 50 feet. The third belt will be the component that comes next. While the second belt may receive 75% of the valuation of the first belt, the third belt could receive 50% of that value. Areas up to 150 feet would be valued at Rs.15 lakhs if belt 1 is worth Rs.20 lakhs. Based on how large it is, areas exceeding this will be valued at Rs 10 lakhs. This process will help you with how to calculate valuation of property. You can also refer to the above answers to know about the property valuation formula.

So you are now aware of how to do market value calculation of property.

Read More: How to calculate the market value of property in Mumbai? How to find the market value of property in Hyderabad?

Hi,

Most home sellers overlook the fact that the

online valuation of property

is not just determined by the price they paid for the home or the amount they spent remodelling it when assessing its price. A property's market value is what a motivated buyer would offer.

Avail yourself with end-to-end assistance regarding property verification till registration from the experts at NoBroker

After reviewing the first two responses on

how to know market value of property

, I'd like to reaffirm that market value is the price at which home would ordinarily sell. Sales resulting from unforeseeable events like relocation, a family member's death, or any other situation when the seller is compelled to sell the home are not included in this.

• Market behaviour (supply and demand)

Due to supply and demand in a specific area, real estate values fluctuate. It is determined by comparing the number of homes for sale in your region to the number of buyers there, as well as how quickly a property sells there.

How to know market value of property?

• Keep an eye out for comparable properties that have recently sold in your neighbourhood or in adjacent areas. Properties that are comparable to one another in size, style, age, and location are referred to as comparable. If you have a broker, he will help you with this search. If you haven't recruited someone yet, you'll need to do some web research and examine the available listings in your community or society. You can go through the listings provided by NoBroker to get an estimated idea of an

  online valuation of property

  .

• You can get a general idea of the price range of a comparable home in your region by speaking with nearby dealers or neighbours.

• Now choose three properties that are identical to yours in every way, including age, size, amenities, and style. If you can locate properties that are comparable, great.

• In that case, you will need to change the sale price. For instance, a residence like yours with more facilities would cost more money. A property without a garage or parking space would also be less expensive. You will therefore need to alter the sale prices of all three comparable houses.

• Once you've finished comparing houses, add or take away from each figure to determine the ultimate sale price. You add the cost to the final sale price if your house is more recent, larger in size, or has more features. This is possibly the most challenging phase because it involves numerous computations based on various property characteristics.

• A thorough evaluation will help you choose the appropriate price for your house, nevertheless.

• Find the sum of the adjusted and final sale prices for the three comparable properties. To determine the average adjusted final sale price, divide the total by three. The estimated market value of your home is this sum.

I would like to conclude here about

online valuation of property. I hope this helps:)

Read More:

How To Find Market Value of Land?

In India, the price of the property is rising. Whenever we step to inquire about the property rates, it is already a little more than it was before. Property values are significantly rising in the country's urban areas. However, the value of land in many locations has stayed constant for years. The market value of land is determined by a number of factors. They primarily comprise the location, size, form, and level of the land, as well as the regulations associated. Let me tell you about the market value of property calculation.

Guide on how to calculate property value:

• The above answer of Ashwin is the perfect one to understand the detailed calculation of property value.

• The market value of land or property is the lowest price at which property in a given location or neighbourhood can be sold. It is the minimal sum for which a property must be registered, as determined by the state government.

• You have the authority to sell the property at any price he chooses. In no case can a buyer convince him to sell at the government-determined market value of the property.

• If you can get your hands on a property for less than its market worth, it can still be registered at the government's guiding value. This implies you'll have to pay property taxes based on its current market value.

• If you buy a home for more than the market value, you'll have to register it and pay taxes on it at the full market value.

How to find market value of property?

1) Location: The most important factor in evaluating the value of a piece of land is its location. The size of a community's growth determines its worth. This is why a huge property in a growing neighbourhood would sell for considerably less than a small plot of land in a well-developed neighbourhood.

2) Construction Quality: The condition of building work standing on the ground comes in second in evaluating the value of the land. In the same neighbourhood, a structure constructed with premium materials will cost substantially more than a building made with medium quality materials.

3) Property’s age: Another aspect that influences the value of a property is its age. An ancient building would be substantially less expensive than a new building in the same location.

I think you understood the market value of property calculation.

You can get help from NoBroker management services to check your property value. Seller plans from NoBroker will take care of everything if you want to sell the property. Read More: How to find the market value of property in Hyderabad? How to find market value of land in Tamil Nadu? How to calculate the market value of property in Mumbai?