Property valuation is an important component of
a property transaction. The valuation process evaluates the market
value of the property. A comprehensive valuation report contains
value of all the major assets of a property and also the basis and
manner in which the valuation has been performed.
Valuation or assessment of a property can be a self-assessment or
through an external source. One can seek the service of various
professional agencies or hire a Government registered valuer for a
fee as prescribed by the valuers association. Some real estate
agents too conduct valuation based on prevalent market rates.
But it is always advisable to conduct an official property
valuation since the valuation report comes handy in different
financial transactions. For example, if one uses the valued
property as a security against a loan, the bank's loan approval
process would be expedited if the property is certified by an
official valuer. Such certification also becomes essential in
situations where the correct value of the property has a legal
bearing-such as, a will statement, insurance papers, business
balance sheets etc.
The factors that have an impact on the market value of a property
are: demand and supply forces operating in the market, type of
property, quality of construction, its location, the local
infrastructure available and maintenance of the property as well
as that of the premises.
Layout of premises and ancillary costs too are given importance in
a property valuation. The layout of the premises in terms of
optimum space utilization in an efficient manner helps the
premises notch up valuable points. Ancillary costs of holding the
premises like society outgoing for maintenance of the building,
municipal taxes, etc would also determine the marketability of the