International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 10 Issue: 06 | Jun 2023
p-ISSN: 2395-0072
www.irjet.net
Techniques, Approaches & Comparison of Valuation- A Case Study of Residential Property of Nashik City Mr. Vrushabh Kale1, Dr. Nitin Bharadiya2, Dr. P. L. Naktode3 1M.Tech. Valuation Student, Sandip University, Nashik, Maharashtra, India
2Associate Professor, Department of Civil Engineering, Sandip University, Nashik, India 3Professor and Head of Department, Department of Civil Engineering, Sandip University, Nashik, India ---------------------------------------------------------------------***---------------------------------------------------------------------
Practising Valuers used single method for every kind of Land & Building. But it is important to categories the approach of valuation based on Financial Potential & Price equilibrium of asset.
Abstract – A Valuation is combination of arts and science which regulates the value of property. Social & legal science factors are the part of arts and technical or physical factors are the part of science. While determining the fair market value of property it is important to see the interest of person in the property. Best and highest possible use of property is must while calculating the fair market value of property. There are various approaches available to calculate the fair market value of property. Each approach has is unique direction & feature while determining the fair market value of property. It is important apply most suitable approach to given kind of property. This dissertation attempt to examine the residential property using various approaches. Approaches like Income approach, Cost approach, Market approach are examined in the given dissertation. This study is carried out under supervision of Government registered valuer.
The research to examine the applicability of approach of Valuation should be done. This dissertation examines the suitability of given approach for given kind of Property. 1.2 Objective of Study i)
To Compare Techniques of Valuation of Land & Building. ii) To Compare the Approaches of Valuation of Land & Building. iii) To Calculate the percentage difference between approaches used to calculate Fair Market Value of Land & Building.
Key Words: Market value, Approach, Residential, Income, Cost, Depreciation, Replacement cost. 1.INTRODUCTION
2. LITERATURE REVIEW The factors affecting value of property are Economical, Social , Legal & Technical. The intersecting relation between the Aspects of Valuation decide fair market value of the property. The Valuation of Land & Building asset is depends on the subject matter of valuation. It is a interest of a person in the property. The legal and best possible use of property can only give fair market value. In Recent time the Valuation of Land and Building required for Companies Act, Mortgage Purpose, Visa Purpose, Bank loan purpose. The Methods of Valuation are depending upon the Aspects of Property.
i)
In the given literature the Authors illustrated applicability of Depreciated Replacement Cost Method for Public Buildings. The Depreciated Replacement Cost Method is applied by Red Book for the valuation of specialized listed buildings in the private sector. The other Valuation alternative / Valuation approaches are also discussed in given research. ii) O Connellan, et al (1993)
In Current situation the need of Appropriate approach for given Valuation is having extreme significance.
In the given literature the Authors discussed about the new classification system & Methodology for buildings that is discounted asset rents (DAR)
Case Study to evaluate Fair Market Value should based on nature of property and its financial behaviour.
The Authors referred the Dawkins (VO) v Leamington spa BC & Warwickshire cc (1961) RVR 291 for explanation of contractors test.
1.1 GENERAL The research required for method to evaluate fair market value is proposed in the same research work. In India the Popular Approach for Valuation is Cost Approach which is based on the “Principle of Substitution”.
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The testing of the cost approach is based on three tests which are Starting point objective which based on opinion or judgment?
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