Land And Property Valuation

Land And Property Valuation

Need Of Consideration of Environmental Factors In Valuation :-

VALUATION:

Valuation as it is a Simple art but to Make real valuation – requires a Great deal of imagination,experience & Consideration of Various Factors apart from Already prescribed in various books,manual on valuation,Govt.rules regulation, acts And standard trade practice etc.Some time a Valuation,Prepared on realistic & true Rates of land, Structure,shape,life,location,proximity etc.but can be meaning-less,if No attention is Given to Surrounding & environment of property under valuation.

We as values, have normally confined ourselves to valuation of property only without Putting yourself in to trouble to evaluate the surrounding environment of property under Valuation, if we put real efforts to go into depth of factors effecting the valuation, may Be less or more.As a value no compromise should be done to get fair valuation of Property.
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GENERAL FACTORS OF LAND VALUATION :

The value of land depends on the various factors such as-size, location, shape, Nature, tenure, utility, demand and Supply in the class, Surroundings, political Stability, Govt.Policies, FAR, Land Use, Master plan, Connectivity of land etc. As observed by the Hon'ble Supreme Court of India in the case of Chaturbhuj pande Vs.Collector (AIR 1969 SC 255), the characteristics of comparables, Comparable, Comparable sales instances on the basis of which, the market rate is determined would Be Such as under :-

  • Similar in character as far as it can be.
  • Reasonable proximus to the land under valuation.
  • There should have been similar amenities and advantages.
  • The sale should be true reasonable proximal to the date of valuation.


On the basis of the guidelines as suggested by Honble Supreme Court of India, the Working of the land, rate should be relied upon the basis of sale instances of the same Area and near to the date of valuation, to be collected from the Govt. Department, Valuer and developers of adjoining areas.

Therefore, as per Guidelines Suggested by the Honble Supreme Court of India, the Rate of subject land based/derived from the information the following factors of price Adjustment are to be applied in order to make the comparable & most reasonable for The subject land.

COMPARABLE CHARACTERISTICS OF PROPERTY UNDER VALUATION :

For adjustment of rates necessary co-efficient for increasing of rates by padding the Additional factors or by comparing the short fall in rates of land under valuation, like:-

 

S. No.
Reason / Description
Co-Efficient %
1.
SHAPE : The shape of the subject plot is very much,Irregular,having a number of notches Going deep Into others property,where as the shape of plot of Sales instances is regular.
0.50
2.
NATURE OF LAND :The subject land is hilly and Nallah having Depths varying from 20 ft. to 25 ft.as on date of verification And is almost identical to the land.
0.50
3.
TIME GAP:Since there is a gap of about 3 years & Eleven months and considering an increase of About 9% annually.
40
4.
APPROACH: There is no approach for the subject land As well as for sale instances but zonal plans have a Provision of 3 Nos. 60' wide roads within the land.
+2
5.
UNAUTHORISED OCCUPATION: It is not reported that Any land is shown under the occupation of other villagers.
NIL
6.
LAND FOR DRAINAGE : Even after reclaiming the Nallah some Part of land is to be left for realignment of nallah as per the Mandatory requirement of Drainage Deptt.
+1
7.
LAND UNDER INFLUENCE & RESTRICTED USE : No records available for on construction activities ban for to Be carried out.If yes,land of all the cases are affected By this restriction
NIL
8.
SIZE: It is well established fact that larger the size of the plot The cheaper it is.In this case area of subject plot is more than Twenty times than areas of sale instances (This fact is well justified From the sale instance).The area of land is in acres not in sq. yds.
-1.5
9.
SYNERGY OF LOCATION : At the time of land sold,no Development was started.Now due to high quality Development this land under valuation will also Get boosing in market price.
+15
10.
READY POSSESSION: It was informed by owners that they can Give possession on signing of agreement subject to pending Payments after signing of MOU for mode of payments.So that Perspective purchaser can start development at once.
+4
11.
POLITICAL STABILITY & GOVT.POLICIES: During the past 3 years political stability,economy of country has improved With liberal Govt.policies for development of housing,Infrastructure development specially for NRI's.
+1
12.
FAILURE OF DEVELOPMENT : There is no fear of time bound Restriction for development or revert back of possession in land Under valuation,other land has a restriction of 2 years.
+0.5
13.
MASTER PLAN AND FAR : Land has restricted use being Residential in nature/as per master plan while other land Under valuation falls under special zone with better FAR.
+2.75
14.
GOODWILL OF SELLER : Being partner of adjoin residential Colony fully developed and available in open market with Great demand.
+0.5

 

A valuers who provides his judgment in valuation,they are service providers To the Society. The profession of a service provider implies high standards of ethics And morality.A generalistcan carry on administration only with the help of pecialists.The specialist who is called upon to provide technical service should be loyal and Devoted to his profession on the one hand,and to the organization/individual on The other hand.So,the registered valuers have the enormous responsibility of Providing true and unbiased service,so that tax administration can take a fair and Correct view.

 

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