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Do you want to sell your property very soon? Suppose you want to sell your home. You will have to calculate the real market price of your home in that case. The real market price is nothing but the exact value of your home in the market.
3 methods to calculate the market value of your home:
1.Cost approach: If you have a redeveloped property to sell, the cost approach is ideal for you to assess its market value.
- You need to calculate the price needed to build another whose interior and exterior look the same. Or find out the price one can charge for another property having the same features as that of the existing one.
- Now follow the steps to calculate the depreciation of your property so that you can realize its fair price.
Image Source: Google
2.Component approach: Here, the sum of two factors, i.e, land and building prices, is considered.
1.land price assessment:
If your property belongs to the city with the urban land tax collection rule, you need to know the value that its urban-local authorities have fixed. If not possible, go for the price that development authorities have calculated.
2.Building cost assessment:
Here the factorization of depreciation and reproduction cost is vital to get calculated.
- The Sum of the value of the building and the respective plot is reproduction cost.
- The sum of the plot’s value and 10% of reproduction cost multiplied by the property’s total area is the fair price of the property.
Image Source: Google
3.Sales Comparison approach:
Here you need to have proper knowledge of the price that properties of similar features hold.
- Make a note of the features of your concerned property like the number of bedrooms, location, area, etc.
- Identify at least three properties of a similar kind and calculate their sales price.
- Calculate the benchmark price of the property.
Image Source: Google
We want you to calculate the market value of your property without any confusion. So here are the three ways for the same.
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