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Message from B. Kanaga sabapathy 26.07.2023
HOW TO VALUE A FLAT FOR SELLING PURPOSES
Question :
It is a flat of 1,000 sq.ft. which is 50 years old. The UDS of land is 300 sq.ft. How to estimate the value for the purpose of selling?
My opinion :
• When the life of the building is almost over, I suggest you to calculate the value of UDS of land by applying the prevailing market rate and add the salvage value of the building.
• The above method can be followed if the purpose is selling or buying.
• Depending upon the demand and location, take a judicious decision.
• It is to be noted that doing valuation by rent capitalisation method is not advisable.
With best wishes,
B. KANAGA SABAPATHY
[email protected]
www.bkanagasabapathy.com
About the Author:-
- Mr. B. Kanaga Sabapathy born in 1951, is a Civil Engineer who belongs to the 1972 batch of Regional Engineering College, Tiruchirappalli in Tamilnadu.
- He is a Registered valuer of the Central Board of Direct Taxes, a Professional Engineer and also a Chartered engineer. Valuation is his main profession..
- He was the National Vice-President of the Institution of Valuers (India) for 11 terms.
- He is a regular contributor of articles in the Indian Valuer Journal from the year 1985. His articles especially his regular column “Questions & Opinions” are very popular among the practising valuers in India.
- His book “Guidelines on Valuation for Banks” (2002) is used to be referred by many banks. The valuation formats designed by him were accepted and adopted as the formats by many banks in the country.
- His son K. Arun and daughter B.K. Aruna are also approved valuers and they also contribute articles to the Indian valuer journal.
- His guru: Mr. C.H. Gopinatha Rao, Chennai.
- His mentor: Mr. R.K. Gandhi, Mumbai.
- His role model: Mr. S. Rajaratnam, Chennai.
- His best students: Thousands of valuers in the country
