How to Determine Market Value of Resale Flat?

There are many resale flat valuation calculators online, but I will suggest you not rely on them blindly. I once checked the price online for a 2 BHK in Bangalore, and as per the calculator, the price was supposed to be Rs 78 lakh. My father was all set to sell the property at that price only, but I checked similar properties in our locale on NoBroker and realised that our property should be no less than Rs 1 crore. For me, NoBroker will always be the best app to analyse the market value of flat. But there is a formula to get an idea of the flat as well as has been mentioned by others here.

How to get apartment resale value?

To reiterate, the formula to get the value of an apartment resale is-

Value or resale flat = value of the undivided share of land + depreciated value of building and amenities + value of overheads, expenses, etc. But yes, you cannot get the exact value using this formula. You have to consider the

• Location of the property

• Size, style or layout of the property

• Conditions and age of the property

• Market trend or pierce rate for similar properties

• Amenities, unique features or other aspects of the property

To get an idea of the exact price, it is better to do a comparison of properties in that particular area offline yourself or use reliable apps.

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Last year I planned to sell our 2 BHK house since no one was living there for a long time but I could not figure out, at what price it must be sold. I had no idea about how to calculate flat valuation and hence had to consult with my parents and friends. I learnt that the valuation depends on various factors so I have to be very careful about it. So let me share here what factors must be considered before reselling a flat and also how is flat resale value calculated.

The value of a property may increase or decrease with the passing of time. Here is the list of factors that affect the value of a property-

• Condition of the house: If the property is in a good condition, the resale value of it will increase but if it is not, the price will fall down

• The house’s style or design: Style play a vital role in property selling. If a property is built in an old style and does not follow the latest trends and design then the property price might fall

• Latest developments around the property: If there has been no such development around the property, you will not get a good price after selling it so developments play a crucial role in increasing the property’s price

• Location: If a property is in a remote location it won’t get a very good resale value but suppose it is very near to markets, malls, main roads or more, it will demand a good price

• Amenities: The more the amenities a property has, the more the price of it will increase

There are many more factors that determine the resale value of a property.

The above-mentioned factors affect the value of a property but the best way to know your property’s resale value, just try to know the price of other similar properties near yours. This is perhaps the best way to evaluate the price of a property. You will know the range of property rates near your house and determine your property’s price as well.

A flat resale value calculator cannot simply give you the answer. Just follow the formula as shared by Aakarshit, i.e 

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

Do note that your property price might fall as well. Depending on the factors I just mentioned, property prices fall as well. Those factors can also result in the

depreciation value of flat in India so to get a good sum of money for your house, repair and do the necessary renovations as required first before selling it.

You can also hire an expert to evaluate your property’s price for you. I hope you have understood how to calculate flat valuation now.

Hi,

There are a couple of ways by which you can find the answer to how to calculate resale value of flat. When I sold my property, I went to the broker to find out. He told me that there are a couple of ways to do it. 

1. There is a formula to calculate market valuation of resale flat, i.e.

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

2. To calculate you must know the current market price of similar properties in the location. Based on this data, you will get an estimate for your property.

3. You can put your query on online real estate websites like these, they have an extensive data team who can track and give you an average property value on a per square feet basis.

You can check this out and see if this helps :)