Property Valuation Services In India | Resurgent India Limited
February 09, 2023
Property valuation involves estimating the worth of a real estate. Determining the value of a real estate property is a crucial process, which serves multiple purposes, including selling the property, securing a mortgage refinancing, or calculating the inheritance value of an estate. This task is carried out by utilizing various approaches, including the market, income, and cost approaches. To ensure an accurate valuation, it's important to engage the services of a qualified professional, such as a real estate agent, appraiser, or property valuer, who has the expertise and experience in this field.
Why do you need Property Valuation Services?
- Selling a property: When selling a property, it's essential to accurately estimate its market value. Property valuation services will provide the seller with an unbiased assessment of the property's worth, which can help in setting an appropriate sales price. This information can be useful in attracting potential buyers and negotiating offers.
- Refinancing a mortgage: When refinancing a mortgage, lenders often require a property valuation to ensure that the property's value is sufficient to secure the loan. The lender will use the valuation to determine if the property is worth enough to cover the loan amount in the event of default.
- Tax assessments: Local government agencies use property valuations to determine the value of a property for tax assessment purposes. This information is used to calculate property taxes, which are a significant source of revenue for local governments. An accurate property valuation will help ensure that property taxes are calculated correctly and fairly.
- Insurance: To determine the premium for homeowner's insurance, insurance companies need to know the value of the property. A property valuation can provide the insurance company with an accurate estimate of the property's value, which is essential in setting appropriate premiums.
- Investment: Real estate is a popular investment option, and a property valuation can be useful for investors looking to purchase real estate. It can help determine the potential return on investment by estimating the property's value and potential rental income. Property valuation services will provide the investor with valuable information to make an informed decision.
Techniques of property valuation:
- The Sales Comparison Approach - The sales comparison method involves evaluating the worth of a residential property by comparing it to similar recently sold properties (known as comps) as a means of determining its value.
- The cost approach - The cost approach to valuing property involves determining its value by calculating the cost of building the current structure and any improvements and then accounting for depreciation. This method is commonly used for newer buildings or special purposes, as it reflects the cost to construct or replace the property.
- The Income Capitalization Approach - The income capitalization approach to valuing property involves estimating the value of income-generating properties, such as apartment buildings or offices, by determining the annual potential gross income, subtracting any expected losses to arrive at the effective gross income, calculating operating expenses to get the net operating income (NOI), and finally, determining the return rate that a typical investor would require for the property's income. This method is based on the principle that the value of a property that generates income is equal to the present value of the future income it is expected to produce.
Advantages of property valuation services:
Evaluating the value of a property is a method to assess its fair market value. This is especially helpful for first-time property buyers, as it safeguards them from falling prey to fraud or overpaying for a property. Additionally, property valuation aids in weighing the advantages and disadvantages of a property, securing proper insurance coverage, evaluating the potential for future development, determining the profitability of a property, and determining the property taxes. In conclusion, property valuation provides valuable information that empowers buyers to make informed decisions when acquiring a property.
Resurgent India is a well-established financial firm with a nationwide presence and a team of over 200 skilled professionals. Their services include debt, equity, restructuring, and property valuation, and they are known for their expertise in these areas. They have a strong understanding of various valuation techniques and strategies and have a reputation for producing high-quality reports and analyses that have been used in significant transactions for over 250 clients, including major corporations. Additionally, their reports are highly valued for their compliance with regulations and standards.