What is the basis for valuation of old flats?

To sell old apartments in standalone apartment complexes or gated communities, many people are confused over how to go about it. Some take the last transaction as a yardstick while some others try to sell property at very high prices. But, many do not know how to scientifically value the price of an old property and what aspects are taken into consideration for the purpose?

The factors influencing the flat cost are the geographical area, transport facilities in the area, market demand for the area, flat maintenance, community maintenance, amenities available in the community, the way the facilities are being maintained. It should be remembered that the price fixed by the government is always less than the market price. Several aspects should be taken into consideration before selling an old flat. Only on the basis of these factors, a final call should be taken.

• What is the geographical area of the flat? Is it a commercial place or multi-use area?
• The year of construction of the apartment. How old is the structure? How many floors are there in it? The number of flats in it and nature of the structure are also taken into consideration.
• What is the quality of construction? How does the property look? Is it not attractive?
• How is the maintenance of the apartment? Whether the residents’ welfare society maintaining the flat better or not? What are the amenities in the apartment complex? Is there lift facility?
• Is there drinking water supply to the flat? What about facilities like drainages, car parking compound wall?

Where the flat is located?

In which floor the flat intended to be sold is located? The intending buyers will observe the floor, doors, windows, other fittings and finishing of the property. They also observe maintenance of the flat. Other important factors that are weighed before buying a flat are: flat plinth area, carpet area, UDS of the owner of the flat. Whether the flat appears posh or not so posh and not so ordinary or ordinary is also weighed. The use of the property whether the owner is using it for residential purposes or commercial purposes is also considered.

Is it easy to sell the flat?

What is crucial is whether the intending buyer of the flat would be able to sell the flat easily if he wants money in future in fixing the price of the flat. Other influencing factors are the location of residential and commercial areas nearby and negative aspects, if any.

How the price is fixed?

What is observed is the price of flats in other projects in the area having the same specifications of the flat that is intended to be sold. If there are new apartments put up for sale in the area, the amenities and the price are taken note of.

Depreciation of the flat cost?

How old was the structure? What would be the durability of the apartment? Taking these into consideration, the flat depreciation is calculated. Normally depreciation begins from 10 percent. If the maintenance of the flat is good the depreciation is fixed as 15 percent.