How to calculate the resale value of a flat? 

Hello, readers!    

Greetings of the day! 

“Owning a home is a keystone of wealth...both financial affluence and emotional security”-Suze Orman 

It has a deep meaning. Most people invested their money in real estate. Buying and reselling a flat is part of investing. But before buying or reselling a flat, we need to understand...., 

“How to calculate the resale value of a flat according to market value?” This is one of the most frequently asked question. So, I have decided to explain it in detail in my article, where you can calculate the resale value of your flat without any manipulation of brokers. 

Valuation of property requires in-depth study. It is very important to calculate the exact market value of the flat when reselling a flat. As, the stamp duty and registration fee are applicable on the market value of the flat. (As per govt. Ready Reckoner rate) 

The market value is determined by ready reckoner. ASR (annual statement rate) value fixed and published, every year on 31 December, under The Maharashtra Stamp Act,59 of 1958, and The Maharashtra Stamp Rule 1995. 

Note- to find the market value of a flat you need to visit this official govt.

 Link- igrmaharshtra.gov.in  

 

       1.Jurisdiction- 

Find under which jurisdiction the property is located- 

A). District, Tal., division, 

B). Type of property (land, office, residential, shop, industrial unit) 

C). C.S (cadastral survey no. In Mumbai. division) 

D). C.T.S(chain and triangulation on S.N in Mumbai suburban village) 

E). F.P(final plot) 

F). S.N(survey number) 

G). GAT (area number) 

2. Resale value of a flat based on- 

Following cost is applied on the resale price of a flat, which are as- 

1.Market value 

2.Agreement value 

3.Stamp duty 

4.Registration fee is charged on every 1000rupees. 

5.Other taxes and resale taxes 

Note-You need to increase and decrease the rate according to various valuation factors. Stamp duty differs according to location of property. 

 

3.Formula for calculating resale value of a flat- 

Resale value of a flat =value of undivided share of land (USD) (as per sq. ft) + depreciated value of building amenities +value of overheads 

Description of property- 

   1.Total Build-up area = sq. ft/ sq. meter 

   2.Balcony area 

   3.Open parking 

   4.Floor number 

    5.Lift- yes/no 

    6.Age of property 

Ready reckoner rate = residential/ open land (per sq. meter) 

Calculation formulas- 

(A)Depreciation to ready reckoner rate (RRR) = (RRR x depreciation percentage) x floor rise 

(B)Calculate flat valuation = (value of A) x area of flat 

(C)Valuation of open parking =area of parking x (A x parking percentage) 

(D)Valuation of terrace =area of terrace x (A x percentage of terrace) 

Total of valuation =B+C+D 

                            =? 

 Note-The property lasts for 60 years, and resale value depends on the age of the flat. 

 

4.Valuation based as per the govt. Rule- 

1.Build up area=carpet area x1.2 

2.Floor rise 

-Ground floor to 4th floor (as per reckoner rate) 

-5th to 10th (5%) 

- 10th to 20th (10%) 

-20th to 30th (15%) 

_30th and above (20%) 

3.Building with lift facility 

4.Depreciation age of flat- 

-0 year to 2 year (100%) 

-2yr to5 yr.(95%) 

-5yr to 10yr. (80% to 75%) 

-20yr to 30yr. (70% to 60%) 

-30yr to 40yr. (60% to 45%) 

-40yr to 50yr. (50% to 30%) 

-50yr to 60yr. (40% to 15%) 

5.parking area- 

• Covered parking 25% 

• open parking 40% (value for land) 

    6.terace area 40% to 25% (if 

Along with flat)  

7.Garden area- Right in the land for gardening and parking (40%)   

Note- All values based on the (RRR) 

Before reselling the flat need to add these values for getting true resale value of your flat.  

Hoping, this article helpful to you. If, have any questions relating to this topic, kindly put in comment box. 

Tada………!