Property Valuation Service

Property Valuation Service: Our Approach

Enterslice provides proficient valuation services with the help of our competent and skilful advisors. Our valuation consultants have hands-on experience in using multiple methods like cost-based, income-based, and market-based methods for property or real estate valuation. A valuation report made with the help of our valuation advisors will help with a variety of objectives like- investment evaluation, insurance, and more. Other important tasks like tax due diligence and compliance duties are also a part of our valuation expert's day-to-day work. In short, Enterslice is a one-stop solution for all your business needs.

Overview of Property Valuation

Estimating a property's worth is required for various motives and tasks, including sponsoring, sales listing, asset insurance, investment scrutiny, and taxation. But for most individuals, determining the inquiring or purchase value of a piece of real property is the most beneficial application to the rudimentary concepts and approaches of real estate valuation, predominantly as it pertains to transactions. Technically, a property’s worth is defined as the current worth of future welfare arising from the possession of the property. An approximation of the property’s worth must consider economic and social drifts, administrative controls or guidelines, and environmental circumstances that may impact the four components of value- Demand, efficacy, scarcity, and transferability.

Methods Used In Property Valuation

The methods to conduct a property valuation are listed below-

Sales Comparison Method

The sales comparison method involves comparing the subject property to newly sold properties in order to determine its value. This method is typically used for inhabited real estate and is a very frequently and widely used technique.

Cost Method

The cost approach comprises estimating the worth of a property by shaping the current cost of assembling the building and all of its enhancements and then adjusting for any accumulated depreciation. The cost method is not always accurate.

Income Capitalization Method

The income capitalization method assesses income-producing properties, like apartment structures or workplace buildings, by appraising the annual potential total income and other possible losses to reach. It is one of the most accurate methods of valuation.  

Services Offered for Property Valuation Service

Enterslice’s property valuation experts are fully equipped to handle all the processes included in the procedure of property valuation. Services offered by them are listed below-

Property Valuation Report

One of the main tasks that will be performed by Enterslice’s property valuation expert will be drafting a property valuation report. The report will cover all the details related to valuation and the details related to aspects that have impacted the valuation of the property.

Documentation

An on-site inspection and Paper works of a structure are the obligation of the valuation expert. This involves precise measurements of the property and picking appropriate, time-stamped pictures. The assessors examine the asset in general and Document their findings.

Property Inspection

Scrutinizing and evaluating the property’s well-being is another duty of the property valuer. This includes detecting any general problems, the number of lodgings, the design, the parking condition, the landscape, the flooring, the facilities, and more. The appraiser inspects all aspects of the building and keeps precise records.

Location Assessment

This is one of the most crucial steps for determining the profit potential or value of any property in a particular location. The property valuer will pay close attention to the area’s demand, proximity to significant public places, and circling prices. The appraiser analyses your property’s long-term prospects.

Factors Affecting Property Valuation

Valuers take into account economic, social, and environmental factors as well as government regulations when calculating property value. Other aspects are listed below-

Location

Brokers may quote higher prices for commercial properties in developed areas and freehold land compared to residential areas and leasehold plots.

Amenities

In addition to basic necessities like electricity, water, and network coverage, people now also seek properties with additional amenities such as parking lots, children's parks, swimming pools, gyms, and community halls. As a result, the valuation of a property depends not only on the availability of these amenities but also on the level of comfort they provide.

Structure

The cost of a construction project is determined by several factors, such as the quality of materials used, size, and expenses related to labour, durability, and other similar factors. Physical attributes like design, layout, roof covering, foundation type, and building height also have a significant impact on the total cost.

Property recommendations

Enterslice's team of property valuers not only provides property valuation services but also offers valuable advice and guidance to clients looking to buy or sell real estate. They assist clients in finding properties that meet their specific needs and preferences and provide ongoing support throughout the process. With a wealth of property recommendations, Enterslice's property valuers can help clients upscale their real estate investments and achieve their goals.

Auction and Assistance

Our property valuers will provide support during the auction process by marketing to attract the most qualified buyers and submitting all necessary Paper works.

Infrastructure

When investors plan to buy property, they take into account the surrounding infrastructure. The value of a property often increases if it is well-connected to roads, flyovers, rail stations, airports, bus terminals, educational institutions, hospitals, entertainment hubs, retail markets, and other daily amenities.

Demand and Supply

The value of a property is determined by the fundamental law of supply and demand. When the supply of properties decreases, their demand skyrockets, leading to an unequivocal increase in their values. Any modifications in the population of a particular region significantly impact the demand for properties. A region with a booming population will undoubtedly have a higher demand for properties compared to a region with a lower population, which will inevitably have fewer prospective investors.

Affordability

The connection between property valuation, interest rates, and wages through affordability leads to inevitable migration.

Methodologies for Property Valuation

Once an investor decides to get a property, the valuer applies any of the following methods to determine the actual rate of the sale. They are as follows-

Sales Comparison Method

This method is also known as the market data approach, and it helps valuers estimate the current market rate of properties of a particular region to create a valuation report. It also compares similar properties that have been sold recently. Moreover, the sales comparison methods widely apply when evaluating a single-family house or land. Further, analogous properties have some common traits with the subject property, like being sold on a competitive open marketplace in the former year, resemblances with the subject property, and sales in general market conditions.

Investment Method

This approach appraises the market worth of an occupied property based on its prospects to generate revenue in the future. It is applicable to the primary forms of properties where a landlord gets his return on investment on the cost inculpated in purchasing the property. The valuation expert assesses the parallel property transactions to compute the income. After that, the gains are applied to the future rental income and denote the current value of the property. A skilled valuer will be able to compute these calculations, and people who are involved in the transactions can take advantage of it.

Development Method

When appraising undeveloped or underdeveloped land or properties that have the potential to be developed, the Development approach can be utilized in such scenarios. This approach considers the properties’ prospects in development, market stipulations for the actual use, and zoning ordinance. Additionally, the appraisers analyze the land’s circumference, locality, reachability, and acceptable floor area proportion to estimate the property’s worth. This method is most accurate for estimating the value of land for commercial or residential development projects.  

Market Value v/s Price and Cost

The market value is not always equal to the price or cost of a property. Cost tells us the actual capital spent on equipment and materials, whereas the price denotes the capital an individual spends in order to buy a property. It is crucial to note that the price and cost of the property may have an influence on the valuation of the property, but they do not estimate the value of the property. In other words, a property may or may not sell for a higher price, but its value can be higher or lower. Talking about the market value of a property, an appraisal is an estimate or opinion about the value of a specific property on a particular date. Valuation reports are utilized by regulatory agencies, stakeholders, individuals, and mortgage businesses when contemplating a decision related to real estate transactions. The primary goal of a valuation service provider is to take out the market worth or value of the property. The market value is the most accurate price the property may bring in an open and competitive market.

Importance of Property Valuation

A property valuation holds significance in many processes, some of which are mentioned below-

Precise Pricing

When an individual is selling or purchasing a property, a valuation report gives a comprehensive estimation of its present worth. It aids sellers in setting an agreeable price and lets the buyers make informed decisions.

Negotiation

A valuation report made by an expert valuer also serves as a negotiation tool by providing an estimate of the worth of the property. Sellers can validate their asking price with a reliable valuation report, and on the other hand, the buyers will be able to negotiate better.

Funding

During the process of searching for an appropriate mortgage or bank loan, the lenders generally need a property valuation report to calculate the property’s worth and assess the loan amount.

Taxation

In order to help the local government with fair tax assessment, a valuation report serves as an important tool, as it impacts the property taxes as well.

Investments

Many stakeholders trust a property valuation report to estimate and evaluate the upcoming return on investment and make prudent investment choices.

Insurance

Property holders utilize the valuation reports to establish the correct degree of insurance coverage that is required to safeguard their assets.

Legal Disputes

A property valuation report is a critical tool utilized in legal dispute negotiations such as divorce settlements, estate negotiations, property disputes, etc.

Benefits of Property Valuation Process

Property Valuation is a procedure that aids the process of establishing the true market value of a property. This process is advantageous for buyers, especially for individuals who are planning to buy a property for the first time. The process lets first-time buyers get appropriate protection from any false play or over-expenditure. The valuation report also helps the buyers assess the pros and cons of a property they’re considering buying. Determining the appropriate insurance coverage also serves as an important aspect of property valuation processes and reports. The report serves as an important tool for investors to know about the aspects and key highlights of a property, and hence, they will be able to make more informed decisions.

Advantages of Hiring Enterslice’s Property Valuation Experts

Enterslice is a leading firm in the Fintech industry, with a presence all over the country. With a team of 50000+ lawyers and CAs, Enterslice has served more than 10000+ customers. Our valuation experts specialize in equity, debt, and restructuring services and offer top-notch property valuation services. With an in-depth understanding of various techniques and approaches, our team of experts has thoroughly aced the art of valuation as they deliver superior valuation reports and estimation analysis. Some of the key advantages of hiring Enterslice's Expert Valuers are-

• Appropriate property assessment- our valuation experts will conduct a fresh inspection of any property they’re going to evaluate instead of relying on some previous analysis.
• Our team of experts will also provide you with the best possible alternatives to determine the correct insurance coverage, bank loan, or mortgage value.
• They will use multiple methods of valuation to get the most accurate and precise valuation figures.
• They will also compute the appropriate tax applicable to the property so that you’re aware of the upcoming tax-related expenses.

Enterslice’s Expert Valuers

In-house Team

Enterslice is fully equipped with registered valuers specializing in different domains. We provide proficient services with domain leaders who have correct knowledge of the processes involved.

Statistics Aptitude

Our team loves to solve puzzles and complexities. With an experience of serving 10000+ customers, our database is rich with recent and updated information. Our experts are highly trained and professional.

Cost Efficient

Enterslice is known to deliver the best possible results in the most cost-efficient manner. We value your money and time that you wish to invest in us. Our team strives to deliver the best output within our clients' budgets.

Risks of Not Hiring a Property Valuation Expert

There are many risks associated with not hiring an expert valuation advisor. The risk is the tendency to overvalue or undervalue a property. When a property is overvalued, the buyers will feel cheated as they would have more than what the property is worth. If the buyer wishes, they can take legal action against it. Similarly, when a property is undervalued, the seller will not receive the adequate amount for the property they're selling, which can lead to many legal disputes as well. Other risks include- improper assessments, non-availability of comparable sales data, improper transactions, improper compliance, etc. Hence, not hiring a valuation expert can prove to be more troublesome than an individual can estimate.