Valuation & its Need

What is Valuation?

A valuation is an estimate of how much a property, business, antique or any asset is worth. It is the technique of estimating and determining the fair price or value of a property such as building, a factory or other engineering structures of various types, land, Plant and Machinery etc.

Land and Building Valuation

Land and Building Valuation

A property valuation is normally produced as a report, and includes property information – the size of the land and building, rates, details on the construction, the condition of the property, and information on any immediate issues that may need to be addressed – as well as information on comparative sales in the immediate area.

The valuer visits the property, measures it, notes details on its condition and structure, makes notes on the property's vehicle access and any garages or carports, lists any structural faults, and describes what improvements need to be done.

The valuation usually includes photographs of the property, highlighting specific features. The valuer also looks at planning restrictions, and compares all its attributes with those of comparable properties before coming up with an estimated value.

Plant and Machinery Valuation

Plant and machinery valuation is defined as the total cost of the plant and machinery asset used in the production and supply of goods and services by all industry sectors. Valuation is described as the process of estimating the worth of a plant and machinery asset, undertaken by professional valuers.

Plant and machinery include all assets or devices used in all industry sectors for the production or provision of goods and services be it construction, mining, manufacturing, food processing, hospitality and hospitals.

Plant and Machinery Valuation
Securities or Financial Assets Valuation

Securities or Financial Assets Valuation

The valuation of a security is defined as its worth in money or other securities at a given moment in time. The value is expressed either in terms of a market for the security or in terms of the laws or accounting procedures applicable to the security.

A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets. Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical worth or even a physical form.

Need or requirement of Valuation

Our Real Estate Valuation firm help customer/client to determine the fair market value for following purposes.

Buying or Selling

When it is required to buy or sell a property, its valuation is required.

Rent Function

In order to determine the rent of a property, valuation is required. Rent is usually fixed on the certain percentage of the amount of valuation which is 6% to 10% of valuation.


To assess the tax of a property, its valuation is required. Taxes may be municipal tax, wealth tax, Property, capital gain tax etc. and all the taxes are fixed on the valuation of the property.

Security of Loan Mortgage

When loans are taken against the security of the property, its valuation is required.

Compulsory Acquisition

Whenever a property is acquired by law; compensation is paid to the owner. To determine the amount of compensation, valuation of the property is required. Valuation of a property is also required for Insurance, Betterment charges, speculations etc.

Valuation of Building

Valuation of a building depends on the type of the building, its structure and durability, on the situation, size, shape, frontage, width of roadways, the quality of materials used in the construction and present day prices of materials. Valuation also depends on the height of the building, height of the plinth, thickness of the wall, nature of the floor, roof, doors, windows etc.