Get Online Property Valuation

What to Know Before Getting a Property Valuation Service for Your Property

Property valuation is essential & beneficial in order to make smart real estate decisions. Knowing a property’s true worth can save you from making uninformed real estate decisions. Be it a decision to buy a property or to sell a property or refinancing a property or investing in a new real estate opportunity. Property Valuation reports help in negotiating deals in a better way. We will cover the fundamentals around Property Valuation & why it is important in today’s age. We will learn about types of valuations – Online or Desktop Valuation & when to get property valuation done. Who can benefit from a property valuation report? We will also touch the basics on methods & factors for property valuation. Ultimately, explaining how you can benefit from Square Yards property valuation report.

What Is Property Valuation?

Property valuation is the process of finding how much a property’s current market worth is. A qualified valuer provides an official estimate of a property’s fair market value after inspection of the property & analysis of the market conditions.

The valuation process considers multiple factors:

• Property size and layout
• Construction quality and age
• Location and neighbourhood amenities
• Recent sales of similar properties
• Current market conditions
• Legal status and documentation
• For apartments: floor, view from apartment

Why Property Valuation Is Important?

Property valuation benefits you by protecting you from making bad or uninformed decisions. Without property valuation, you might end up selling your property for less than its worth or paying too much when buying.

Banks need valuations before approving loans. They want to confirm the property’s value matches the loan amount. If you default, the bank needs assurance they can recover their money by selling the property.

Valuations help in several situations:

Before buying a property: Property Valuation helps in determining if asking price is fair or not. Valuations help you decide if a seller is asking too much for a property or if the asking price is reasonable.

Before selling a property: Property valuation helps you in setting the right asking price. Too high asking prices usually get buyers disinterested. Too low asking prices can lead to monetary loss.

Before investing in real estate: Calculate potential returns accurately. Rental income and future appreciation depend on current value.

For tax purposes: Property taxes often depend on assessed values. Accurate valuations help you pay the right amount.

During divorce or inheritance: Fair distribution requires knowing each property’s exact value.

Terms Related to Property Valuation

Market Value

Market value of a property is what a buyer would pay for your property today. Market Value of a property is an indicator of current demand, supply and economic conditions. If similar homes in your area sell for ₹1 crore, your property’s market value likely falls in that range.

Fair Market Value

Fair market value assumes both buyer and seller act rationally. Neither party faces pressure to complete the deal. Both have full information about the property. This value represents what the property should sell for in normal conditions.

Assessed Value

Local governments determine assessed value for tax calculations. This value often differs from market value. Governments may assess properties at 70-80% of market value to calculate property taxes.

Rental Value

Rental value shows how much rent a property can generate monthly or yearly. Investors use this figure to calculate returns. A property worth ₹50 lakhs generating ₹25,000 monthly rent offers different returns than one generating ₹40,000/month.

What Is Online Property Valuation Service?

Online property valuation provides quick estimates without physical inspection. You provide basic property details on Square Yards and sophisticated & well trained algorithms calculate approximate value based on available market data.

These services work well for:

• Initial price estimates
• Quick investment decisions
• Loan pre-approvals
• Portfolio valuations

Traditional valuation requires physical inspection. Online and desktop services trade some accuracy for speed and convenience. Banks do not accept desktop valuations for sanctioning loans, they require the valuer to physically inspect the property as part of the valuation process. But Online Valuations provide a fair idea of the valuation of the property to make quick decisions before buying, selling or investing.

When to Get Online Property Valuation Service?

Timing matters in property valuation. Get property valuation done when you need quick estimates or preliminary assessments.

• Planning Stages
  Use online valuation when exploring options. If you’re thinking about selling next year, get an estimate now to plan your taxes better.
• Market Monitoring
  Property owners can track value changes quarterly or yearly through online tools.

• Initial Loan Inquiries
  Banks may accept online valuations for pre-approval. Get one before formal loan applications.

• Investment Rcreening
  Evaluate multiple properties quickly. Online valuations help shortlist options before detailed analysis.

• Insurance Reviews
  Check if your property insurance covers current market value.

Who Should Take Online Property Valuation Services?

Buyers

First-time buyers benefit from understanding fair prices. Online valuations reports give you benchmark for negotiating in a better way. Buyers can spot overpriced properties by comparing the asking price with the online property valuation report.

Sellers

Test the market before listing. Online valuations help set realistic expectations. Adjust your timeline if values are lower than expected.

Investors and HNIs

High-net-worth individuals managing multiple properties need regular valuations. Track portfolio performance without commissioning expensive physical valuations for each property.

Mortgage Applicants

Get pre-approval faster with online valuations. Know if your property value matches your financing needs. Banks may offer better rates when you demonstrate property knowledge through valuation reports.

What are the Online Property Valuation Service Charges on Square Yards?

Square Yards offers competitive pricing for valuation services. Charges vary based on property type, location, and report detail level. Basic online estimates start at ₹999 for residential properties.

Detailed desktop valuations with comprehensive reports cost more but provide legal validity for loans and transactions. Commercial property valuations require more analysis and cost accordingly.

Contact Square Yards for current pricing based on your specific needs.

What are Different Methods for Property Valuation?

Sales Comparison Method

Valuers compare your property with recent sales of similar properties nearby. They adjust for differences in size, age, and features. This method works best in active markets with many comparable sales.

Income Approach

This method values property based on income generation potential. Valuers calculate net operating income and apply market capitalization rates. Commercial properties and rental investments suit this approach.

Cost Approach

Valuers estimate the value of the property by calculating land value plus construction cost and deducting depreciation. This method helps value unique properties with fewer or no recent comparable sales. New constructions often use this approach.

Development Method

For land or redevelopment projects, valuers estimate completed project value minus development costs. Developers use this method to decide if a project is viable.

How to Calculate Property Valuation?

Property valuation calculation requires expertise, but understanding the basics always helps. One can start with recent sales transactions of similar properties in their area.

Adjust for differences:

• Add value for extra bedrooms or bathrooms
• Subtract for older construction or poor maintenance
• Consider floor level, facing, and ventilation in case of apartments or flats
• Factor in parking spaces and amenities

Professional valuers use complex formulas and market knowledge. Online calculators simplify this process using algorithms based on millions of transactions.

What Factors Affect Valuation of Properties?

Location Of The Property

Properties in prime areas or locations usually command higher prices. A property’s proximity to schools, hospitals, and transport links even further boosts the property’s market value.

Property Condition 

It directly impacts value. Well-maintained properties fetch higher prices. Structural issues, seepage, or outdated interiors reduce value.

Market Conditions

Market Conditions fluctuate with economic cycles. Bullish markets inflate property values while recessions depress the value.

Legal Status 

It affects saleability. Clear titles and approved building plans increase value. Litigation or documentation issues on the other hand, tend to reduce the value.

Supply and Demand

Supply & Demand dynamics in specific localities drive property prices. New infrastructure projects can suddenly increase property values in an area.

Square Yard’s Online Property Valuation Service

Square Yards combines technology with expertise. Our platform analyzes vast databases of property transactions. Machine learning algorithms provide accurate estimates backed by human expert review.

Get instant preliminary valuations online through our Property Valuation Tool. For detailed reports, our experts conduct thorough desktop analysis. We provide accurate reports reviewed by experienced professional valuers.

Our services include:

• Instant online estimates
• Detailed valuation reports
• Market trend analysis

Property valuation empowers better real estate decisions. Square Yards makes professional valuation accessible and affordable. Start with our online tools for quick estimates, then engage our experts for detailed analysis when ready to transact.