How to Calculate Price for a Resale Flat

We were trying to sell our old flat, and needed to know its value as of now. I didn’t know how to calculate old flat value. Thankfully, I know a real estate agent who helped us out. They asked for a few details such as location of the property, its age, details about wear and tear, etc. There was one formula they used to do the calculations. I have kept it with me. 

How to Calculate Value of Resale Flat?

This is the formula he used to calculate the value of our resale flat.

= (Comparable sales prices x Weightage) + (Size and condition adjustment) + (Location adjustment)

Now, this could be a bit confusing to understand, but let me explain that with an example. 

Assume that you have a 1500 sq. ft. house, and the properties in your area are available at an average rate of Rs. 8000 sq. ft. Now, taking the size and condition of your property, you assign a 10% positive adjustment and a 15% positive adjustment due to its location. 

Adding these to the formula, the house valuation becomes

House Valuation = (Rs. 8000 /sq. ft. x 15000 sq. ft.) + (10% adjustment) + (15% adjustment)

= (Rs. 12,000,000) + (Rs 12,000,000) + (Rs. 1,800,000)

= Rs. 1,50,00,000.

Using this method, I was able to know how is flat resale value calculated. You can actually use this information to find the value of your resale property easily. I hope you find this helpful. 

Hi, I was trying to sell my proeprty but before doing that, I wanted to learn about its resale value. I called a friend and asked him how to calculate resale value of flat. Here a few points that he had provided me about the same.

How to Calculate Resale Value of Flat?

Here are the points that he told me

• He told me to utilise platforms like NoBroker to research market prices for similar properties in my location.

• He also told me determine the cost of construction per square foot, typically ranging from 1200 to 1500 per square foot.

• Then he asked me to multiply the area by the cost of construction per square foot to get the initial value of the building and amenities.

• My friend suggested me to apply a depreciation rate of 1.5% per year over 60 years, with the property's value decreasing to around 10% of the initial value by the end of this period.

• Finally, he asked me to add an estimated 40% of construction cost for overheads, incidental expenses, and promoter's profit to determine the total property value.

• He also suggested me to calculate the reproduction cost by multiplying the initial cost of construction by the ratio of the current cost inflation index to the index when the flat was bought.

These are a few things that my friend suggested me to do to learn how to calculate resale value of flat. Hope this helps. 

To calculate the price for a resale flat you need to consider various factors such as where the property is located, how old is the property and the market value of the property. There is a simple formula on how to know the price of a flat. The formula is :

Value or resale flat = value of the undivided share of land + depreciated value of building and amenities + value of overheads, expenses, etc.

To learn about other factors you can check the answer on 

You will be able to calculate the resale value of the property more accurately after reading the answer to the question mentioned above.

Hope this will help you.

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