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Property Value Calculator

The document outlines methods for determining fair market value of properties, including the Fair Market Value Method, Land and Building Value Method, and Rent Yield Method. Key steps include checking comparable property values, adjusting for location and amenities, and calculating costs per square foot. It also provides thumb rules for estimating property value based on rental yields for residential and commercial properties.

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Amit Jain
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79 views5 pages

Property Value Calculator

The document outlines methods for determining fair market value of properties, including the Fair Market Value Method, Land and Building Value Method, and Rent Yield Method. Key steps include checking comparable property values, adjusting for location and amenities, and calculating costs per square foot. It also provides thumb rules for estimating property value based on rental yields for residential and commercial properties.

Uploaded by

Amit Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

FAIR MARKET VALUE METHOD

STEP 1 : CHECK PROPERTY VALUE OF COMPARABLE PROPERTIES AND CALCULATE PER SQUARE FEET OF RAW
ONLINE BROKER
99 ACRES AGENT
MAGIC BRICKS KNOWN
HOUSING
COMMON FLOOR
INDIA PROPERTY
MAKAAN

STEP 2 : DEDUCT 10% FROM QUOTES

STEP 3 : ADD 15 % FOR BETTER LOCATION, CORNER, AMMENETIES LIKE SCHOOL,METRO,HOSPITAL ETC ( S
PREMIUM FACTORS
CBD/ CITY CENTRE 5%
INFRASTRUCTURE 20%
SCHOOLS
HOSPITALS
TRANSPORTATION
PLC 5%
ROAD FACING
PARK FACING
FRONT FRONTAGE
FLOOR 2%
VAASTU 2%
LUXURY FIXTURES 10%
FURNISHED
40-70% DEPRECIATION
ACC TO AGE OF FURNITURE

SAY :
BROKER ASKED
DEDUCT 10 % UPFRONT

ADD PREMIUM 15 % - 25 %

THUMB RULE
PROPERTY VALUE (ONLINE/OFFLINE SEARCH) - DEDUCT 10% FROM QUOTE + PREMIUM 15-25%
HOD
ULATE PER SQUARE FEET OF RAW PROPERTY

OTES

OOL,METRO,HOSPITAL ETC ( SAY 5% FOR EACH)

10,000,000.00
9,000,000.00

11,250,000.00

+ PREMIUM 15-25%
LAND AND BUILDING VALUE METHOD
STEP 1 - CALCULATE PER SQ FT COMPONENT COSTS
A LAND COST( ONLINE AND OFFLINE)
PER SQUARE YARD COST LAND AREA BUILT UP AREA
SQ YARDS IN NEAR BY AREA ( SQ FT) ( SQ FT) FSI /FAR NO OF FLOORS
400 18000 3600 1800 50% 4

B FINISHED BUILDING COST


IF RESIDENTIAL
TIER1 - 2500
TIER2 - 2000
TIER3 - 1500
IF COMMERCIAL
RS . 3000-5000
LAND AND BUILDING COSTPER SQ FT
C MARKETING AND OVERHEADS ( 10%)
APPROX 10 % IS ASSUMING

D BUILDER PROFIT (20-25%)


APPROX 25 % IS ASSUMING

IN THIS CASE RS 4812 IS PER SQ FT COST OF BUILT UP AR


ALUE METHOD
OMPONENT COSTS
E AND OFFLINE)
TOTAL BUILT UP AREA TOTAL LAND PER SQ FT COST
ON PLOT COST OF LAND
7200 7200000 1000

DING COST

2500
3500
VERHEADS ( 10%)
3850

IT (20-25%)
4812.5

COST OF BUILT UP AREA


RENT YIELD METHOD
RENT YIELD = ANNUAL RETURN / PROPERTY VALUE
PROPERTY VALUE = ANNUAL RENT / RENT YIELD
RENTAL YIELD IN INDIA
RESIDENTIAL : 3-4 %
COMMERCIAL : 6-8 %
THUMB RULE :
30x OF ANNUAL RENT IN RESIDENTIAL PROPERTY IS FAIR VALUE
15X OF ANNUAL RENT IN COMMERCIAL PROPERTY IS FAIR VALUE

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