From Location to Orientation: These 5 factors determine value of your property

A thorough assessment of multiple factors while selecting a property is not only crucial but also integral for real estate clients, one such factor is determining the correct value of a property. This criterion has several sub-factors that help realty buyers with a proper estimation of the said project, both in the present and future terms. Considering the property value is the prerequisite to doing a self-assessment of one’s own monetary capability to afford a property. According to Manik Anand, CEO, White Knights Realty, this becomes all the more important for those who are buying a property purely for investment purposes. 

From location to orientation and view, below we are mentioning five key factors to be considered while determining a property’s value:  

Location

Questions such as “where the property is situated”, and “on what land/plot the property is” are some preliminary questions that must be answered when considering a realty purchase. The location of property not only has an impact on its monetary value but also filters the type of consumers willing to buy it. Projects situated in the central part of the city and developments are evidently more in value. The proximity of civil amenities such as schools, hospitals, markets, banks, workplaces, etc. adds great value to the final price. 

"The common thumb rule is that a property’s valuation in terms of location is directly proportional to the number of resources and facilities around it," Anand said.

Construction

The way a property has been built has an impact on its landing price; the labor and material used on the project, the builder under whom it was built, fixtures and fittings used inside; the floor(s) of the project are price determiners. The cost of construction can be determined from the estimations, the bill of quantities, and using the present-day rate of building materials and labor.

Orientation & View

Factors such as the layout, position of the floor a project is situated on, the Vastu-orientation, and the view from the property tend to have significant roles in how a property is evaluated. For houses, in general, an orientation capturing sunlight from the north is the most desirable because it will deliver radiant light into the house. 

"The market value of the property is usually determined by the price per square foot of the property. This is calculated by dividing the price of the property by the area in square feet available. In India, emphasis is also given to VastuShastra guidelines as a Vastu-compliant house ensures peace and prosperity for the inhabitants. Certain directions for home construction are regarded as auspicious; consequently having an impact on property value, especially residential projects," the CEO of White Knights Realty said.

History

A property's value is defined as the present worth of future benefits arising from the ownership of the property. Pre-owned property and new projects both have different values; it is almost inevitable to think that the older the property is, the less value it will have, barring exceptions where the state of conservation is excellent or if it has been recently renovated. Legal disputes over said property, and the age of the property influences the price of the property.

External Factors

When formulating the value of the property, one must always count on taxes and legal expenses included in the sale of the property. In the calculation, a potential customer should always keep this factor in mind. The supply and demand of a particular size and kind of property would also determine its value.