A property to be on the market should first have a proper valuation that can help determine the fair price of the property. However, like with any other asset, several factors come into play regarding valuation.
In this blog, we shed light on the major factors you should consider while doing a property valuation.
Location
The property’s location is one of the biggest impacts on the value of that property. The property’s location relative to other facilities, resources, and amenities decides its worth. With better access to these, a property can have a better value. The kind of population residing in the location, the crime rate in the area, its climate, etc., are other deciding factors. Depending upon the type of property that is being valued, each of these factors plays a significant role.
Transport
The value of your property is affected significantly by the transport available from the property in question. Is it accessible by primary means of transport? This is one of the main questions that would come up when talking about the value of a property. Accessibility to public transport systems, like buses and trains, is important for anyone looking for residential properties. Hence this is another aspect taken into consideration while valuing a property.
Facilities
The kind of facilities one can find near the property also determines the value of the property is given. With a property that is near essential facilities like schools and hospitals, it is more likely to attract more takers. Access to IT parks and industrial areas is also an advantage. Properties that decrease the commute to work or school fetch a bigger price.
Condition and design
The condition of the property plays a huge role while determining its value. For example, one cannot expect a hugely profitable sale for a dilapidated building. The amount of repair work done to the building affects its value too. The design of the building also is essential as people are very perceptive of the trends and look for properties that match them. Having aesthetic design increases the rate of the property.
Economy
One cannot expect to make a fantastic deal in an economy suffering. As much as it is away from us, the economy directly affects the property’s price. A healthy economy creates more businesses and hence better value for goods and property.
Type of buyer
When valuing your property, you should also consider the kind of buyer who would be interested in your property. Is for private use, like a house. Or is it for a commercial purpose like an office space or a shop? With different kinds of buyers, the processes are different, and so is the valuation method.
Paperwork
The last thing a buyer wants is a property that is caught up in paperwork and approvals. Before you venture out to put your property on the market, ensure all the paperwork, like the title deed, sale deed, clearances, certificated, and verifications, are in place.
Summing Up
Buying or selling a property requires a well-drawn-out valuation of the property. One cannot go with an informal estimate of the property, be it based on previous rates or as suggested by a real estate agent. You might be underpricing or overestimating your property value without a proper valuation process. This is why you must hire a professional business valuation expert to ensure the correct valuation of your property.
For accurate property valuation, talk to our valuation experts today!