How to find market value of land?

Hello Richa. I can help you by sharing how to find market value of land. There are several methods used in determining the market value of a land in India. I got the market value for my land through the belting method, which is one of the most widely used ones. I will share mention a total of three methods for the calucation of market value with you below.

How to Find the Market Value of Land?

Here are some methods you can use to find the market value of your land:

Belting Method

It is considered one of the most common methods. Here, the property is divided into 3 belts, the belt closest to the main road is allotted maximum value, and the second belt is assigned two-thirds the price of the first belt’s price. While the third belt is assigned half the value of the first belt.

Comparative Property Valuation Method

This also goes by the name of the sales comparison method, where the value of similar lands in the same locality is calculated. There can be variations in the property rates based on direction, legal issues, size and interiors.

Guidance Value Method

This method involves guidance value, which is the minimum value of land determined by the government. Here, market value is figured out after considering the guidance value which is also called the circle rate. If land is purchased for a lesser amount than the guidance value, then it is deemed illegal.

This is all. I hope it helps.

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How to Find Land Value? 

Land ownership diversifies your investment portfolio while also providing financial security. Due to its limited availability, a plot or piece of land is always treated as a valued asset. The value of a piece of land or a plot of land has risen as a result of ongoing infrastructure and IT development. In India, there are a variety of methods while delving into the question of how to find market value of land? 

The market price and the market value of land are not interchangeable terms. The open market price of land is the amount for which the owner is willing to sell his property. The market value of the land is reflected in how much this land is worth in comparison to its price, especially in the eyes of potential buyers.

Almost often, an owner assigns a value to his property based on a variety of circumstances. When a prospective buyer evaluates the same land, however, he may not consider it to be as valuable as the owner believes.

However, while determining how to get market value of land? We need to consider that the current value of the land is determined by the price at which a comparable property in the area was recently sold. Where Land is the expense of purchasing or acquiring land. Gross Development Value (GDV) is a projected final capital value calculated when selling land at a given period. 

If you also want to consider how to determine fair market value of land? We should take into consideration that the market comparison approach and land's Fair Market Value (FMV) should represent the current actual sales prices that landowners or sellers are receiving from prospective buyers. 

The key to estimating the fair market value of land is to have good, complete, and current data on a sufficient number of similar properties that have recently sold—typically within the last two to six months. 

Real estate indices, such as the National Housing Bank's (NHB's) Residex or the RBI's Housing Price Index (HPI) and Residential Property Price Index, can be used to calculate FMV (RPPI). Hence these aforementioned factors will help you with a clear understanding of how to find market value of land?

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