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- Here is the answer
Simply look at the sales of similar properties in the area to get an estimation, This is generally used for residential properties.
As per my knowledge, another approch that can be used is one that is used by insurers; Replacement cost approach i.e. how much would it cost today to build the same proeprty from the ground up.CommentQuote0Flag
- ways that govt agencies use ??
Thanks, but I am looking for some other ways that govt agencies use. If anyone can suggest??????CommentQuote0Flag
- In govt records there is always a circle rate for the selling price of land and they consider that rate as a benchmark of pricing , they generally tend to add the construction cost to that rate and derive the costing of the flat.
After considering the market value of the flat i.e the price of land going in the market at that particular time and the construction cost you can get to know the difference in market price and the circle cost
Always consider one thing that circle rates are generally considered only to lower down the regd costs etc and market rate of the property is much higher in comparison to the circle rates
For evaluation purpose generally in case of bank loans etc market price of the property is consideredCommentQuote0Flag