DID YOU KNOW? - How to estimate the value of a property

DID YOU KNOW? - How to estimate the value of a property

 

Putting a price tag on a property you are planning to buy or sell is the biggest challenge. When selling, it's difficult to imagine the price appreciation over the years, especially if you have kept the property for a long time. And then, there's always the risk of underestimating what it's really worth.

 

Overvaluing of the same property may not fetch you buyers and you may have to strike a compromise that doesn't really suit you. When buying, you may simply get a raw deal due to lack of information. To avoid all of this and reach at an average price, you may need to do a little re- search. Here's how to go about it. OFFICIAL SOURCES A vital source of information on the pricing is the office of registrar under the local development authority. The registrar office maintains a record of all the properties and its last sale value recorded at the time of registration of the property.

You can visit the registrar office and ask for the value that was mentioned at the time of registration. The process may take some time, but it's worth the effort. Once you know the exact value of a property when it was last registered, you would bargain accordingly.

If your property falls in one of the localities that is covered by National Housing Bank's property index, it will give you a rough idea about the price appreciation in the area. INFORMATION ON THE GROUND There are all sorts of brokers in the market, but when it comes to ground reality, they are the best sources. To make sure you get a true picture, visit as many brokers as you can in your area. Brokers will also give you an idea about the recent transactions of similar properties in the area. This comparison will help you set a benchmark. Based on the estimates given by the brokers, you can reach an average price that you think is reasonable.

THE PRICE PUSHERS In demand: The basic demand-supply premise always affects prices. So, an area for which the demand is high may be more ex- pensive than another which is not finding any takers. Look at the recent transactions in your area and how much time it took their owners to sell these. Once you list your own property with a bro- ker or a housing portal, the number of calls you get for it would give you an idea whether it is in demand.

Location, infrastructure and connectivity: Accessibility, the quali- ty of construction, design, local infrastructure and amenities are some of the factors that impact a property's value. So, if there's a market or a park close by, it will be add value. Accessibility of public transport, healthcare facilities and schools are other infra- structural requirements you should mention when listing your property for sale. Even when buying, consider these factors.