The property must be evaluated by considering the below factors
1- Market
2- Location
3- Condition
4- Age
5- Neighbourhood
Purposes of House Valuation or Property Valuation
Buying or Selling
When someone buys the property or sells the property the building valuation is required.
Fixation of rent
In order to determine the rent of property valuation is required. There are many factors involved in determining the Rent value. Usually, 6-10% of the amount of valuation is fixed as Rent value.
Taxation
To determine the tax of the property its valuation is required. There are many taxes that are connected with the valuation of building like the Municipal tax, Property tax, wealth tax etc.
Compulsory acquisition
Whenever the land or a building is acquired by government or law, compensation is paid to the owner by determining the value of the building.
Mortgage or Security of loans
When loans are taken against the security of property valuation is done. This type of valuation is determined by bank officials.
Insurance
In order to find out the Insurance amount, the valuation of the property is required.
