Services

Property Valuation

VALUATION:KINDS OF VALUES AND DEFINITIONS


Market Value: It is defined as the sum the property will fetch if it is sold in the open market.

Guideline Value: It is the value of the land which is recorded in the Register of Registrar's Office and used for the purpose of determining the Stamp Duty at the time of Registration of the Documents.

Book Value: It shows the original investment of a Company on its assets, including properties and machinery less depreciation for the period passed.

Salvage Value: Value of Machinery realized on sales when its useful span of life is over but still it has not become useless.

Depreciation Value: It is the reduction of Value of the Property due to age, deterioration; lack of maintenance, obsolescence, decay, wear and tear etc., Depreciation Value depends upon the age and its future life.

Present Value: It is replacement value less depreciation value. The other Values are Liquidation Value, Intrinsic Value, Investment Value, Cost Value, Warranted Value, True Value, Written Down Value, Going Concern Value, Commercial Value, Rental Value, Exchange Value, Appraisal Value, Face Value, Utility Value, Use Value, Loss Value, Tax Value, Economic Value, Sale Value, Condemnation Value, Cash Value, Future Value, Capital Value, Mortgage loan Value, Forced Sale value, etc., etc.


Different Methods of Valuation:
Land and Building Method for Bungalows / Flats.

Bungalows / Houses: In this case the cost of land and building are assessed separately and added to get the present value of the property.


Valuation of Land to be considered
  • 1. Guide lines from Registrar's Department (Circle rates)
  • 2. Price paid within a reasonable time, in bonafied transactions of purchase of lands acquired.
  • 3. Demand, locality, characteristics like shape, size and location of Roads and Parks.
  • 4. Opinions of relevant person such as Neighbors, Brokers and recent sales and prevailing trend.
Valuation of Building to be considered

Plinth area rates bases on CPWD or State PWD and adjusted by Index cost, Present Value of Building


1) Flats
The above method of Land and building method cannot be applied on flats since G. House societies and DDA/ MCD Flats are effected by various factors like common passages, lifts, common places of assembly, parking. Mostly it depends on Social built up of the housing complex also. The rates are assessed from Per Square feet rate of the super area which includes Plinth area + common share of common areas such as Entrance, lifts, passages, stair hall and parking etc. It is generally taken as 15-20% higher than the plinth area. The valuation is done, thus on Prevailing rates of the super area in the locality
  • 1) Floor Area
  • 2) Plinth Area
  • 3) Super Area
2) Rental Capitalization Method
It consists of capitalizing the net annual Rental Income (NAR) at an appropriate rate of Interest and rate of Capitalization (80% as per Wealth Tax rules for Delhi / NCR) Net annual Rent income equals to Gross Rental Income - outgoings like Property tax, repairs, maintenance service charges, Insurance premiums, rent collection and management charges etc. app. 40%
3) Development Method
This method is used to evaluate such property where there is a developmental potential, so that value of property after development will be increased more than the expenditure incurred, for example large portion of land can be divided in small plots and developed fully so as to provide plots of land for residential societies, or a large complex of multistoried buildings, shopping / commercial complex etc.
  • (i) Guideline Rate
  • (ii) Prevailing market rate
Guideline Rate
Guideline Rate is the unit rate fixed by the local Registration Dept authorities for the purpose of deciding the stamp Duty for any sale transaction between the Buyer and Seller. This rate is fixed based on the recent transactions and sale instants.
Prevailing Market Rate
This is the rate to be adopted while assessing the present market value. This rate is to be arrived from comparable/ recent sale instances, transacted in the surrounding or nearby areas.

Unit Rate Application Methods

The unit rate application in the valuation of land will not be same for all types of plots. It varies with the shape, size, Nature etc

(i) Resale Flats

Resale flat is nothing but a second hand flat OR commonly referred as used flat.

Direct Benefits

Getting your hands on a resale property is beneficial in several ways. Whether it is a newly constructed, ready-to-move-in flat, an older flat or an under construction one, every kind of resale apartments has its unique benefits:
At times when the snowballing property prices evade the reach of an income-conscious individual, the resale market provides a ray of hope by offering flats at a cheaper rate.
Purchasing a resale and ready-to-shift flat helps save a good amount of money that would otherwise have been expended in paying rent or EMI and rent both, in case of under-construction dwellings.
There are no cloaked or honey-dipped features for this market. Everything that is in front of your eyes is yours once you own the property.
The immediate possession can provide tax benefit from the first EMI itself.

(ii) Resale Independent House

A Resale property means that this property has been previously owned. It does not necessarily mean that it has been lived in, but it has been owned previously!

(iii) Plots / Lands

We Sell Approved plots and lands also

(iv) Rentals

A property from which the owner receives payment from the occupant(s), known as tenants, in return for occupying or using the property. Rental properties may be either residential or commercial

Property Finance Assistance

A home loan is a major step in your home buying venture. Once you step out to enquire about the loan process, no single day ends without phone calls from lending companies each proposing to offer various financial schemes. That could make loan process quite annoying and mystifying task. Though it is not so, provided you are safe at the hands of trusted and experienced professionals. We are the professionals with more than 5 years of experience with banking background to assist / guide you with home loan sanction, planning, and management would best suit your pocket. They also help you with your wealth tax implications so that your buying experience does not become your liability overtime. They arrange the best possible rate of interest and are solely responsible for your file's approval in the shortest time-period. They will give you a smooth drive through the whole process of:


Filling Application Form
Preparing Documents in support of your application
Discussion & Investigation
Sanctioning of Loan
Acceptance of Loan
Disbursement of Loan

Legal Verification & Documentation

Why do you need to verify a property?

Lots of times realtors launch big projects without having all the required licenses which cause projects to get stopped and you lose out on your investment. Also, when you’re buying a standalone property there can be issues over the legal ownership of the property. We warn you about any such problems too.

How can we help?

We undertake legal verification of property documents to determine the authenticity of the documents presented by the supposed owner of the property or by the realtors selling the property.
Our approach to property legal verification is backed by the specialization and experience of our team members. We take a holistic approach while doing the due diligence of property to give you safe and confident feel about your decision to purchase the property of your liking.

But, then the service must be expensive?

Actually, our property verification services start at Just INR 5000.Imagine spending just INR 5000 can prevent you from making a bad investment worth Lakhs / Crores.

Property Documentation

A new set of documentation is required to register the sale of property in favour of the Buyer. As per the clauses assigned by the legal team or the Bank official, the documents are documented carefully and legally registered.

Here is the list of documents required:
  • Absolute sale deed in present seller's name
  • Latest tax paid receipt
  • If any loan outstanding on the property, latest statement from bank
  • Encumbrance Certificate from date of purchase till date
  • Agreement of sale & construction executed by developer in favour of seller
  • Latest electricity bill & receipt for the said flat
  • NOC from Apartment Association
  • Sanctioned building plan
  • Possession/occupancy certificate from builder
  • All title documents of land owner
  • Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder
  • Whether originals are available for inspection if no loan is taken?
  • A Copy of all registered previous agreements (in case of re-sale property)
  • RTC (Records of Rights and Tenancy Corps) or 7/12 extract
  • Conversion Order issued by the concerned Authority
  • Registered development agreement (If in case of Joint Development Property)
  • Photocopy of Society share certificate & Society registration certificate
  • The seller was the genuine owner of the property
  • The documents were genuine, hence no fraudulent deals

Property Management

Property management is also the management of personal property, equipment, tooling and physical capital assets that are acquired and used to build, repair and maintain end item deliverables. Property management involves the processes, systems and manpower required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization and disposition.
Any property requires maintenance and up keeping, in order to preserve the appearance of the property, the repairs and up gradation are taken in phased manner or periodically.
Repairs like Painting, Plumbing, Plastering and Electrical works are done and maintained with good products without comprise on quality, fittings and materials are replaced to reduce the maintenance cost and to give a best and fresh look always.