5 Things You Should Know About Property Valuation

A property’s price is determined through property valuation process. Find out the factors which determine the valuation of a property and the funds you need to prepare before searching for your dream home:

1. Location

Location is crucial in determining the value and potential of a property. Property price in city center or commercial area will be more expensive than suburban area. Properties in flood-free area will also be more expensive than flood-prone area.

2. Access and facility

Convenient access to and from commercial centers and main roads will also determine the value of a property. Other factors include the availability of public facilities such as hospitals and schools, as well as social facilities such as parks or places of worship. A property's value can also increase if there are orderly site plans, proper drainage and waste management systems and good electric and water supply as well as security in the area.

3. Neighborhood potential

A property located on the edge of the city can be of high value depending on development plans surrounding the area, for example toll roads or connecting roads to well-populated areas. It is crucial to find out if the area crosses a demarcation line to another district, which may cause complications in the form of administrative issues or district-level projects. Find out the range of prices of property in the vicinity and compare with the unit that you are eyeing.

4. Developer’s reputation

Research is paramount. Investigate the reputation of the property developer. You can check websites, ask around or get recommendations from trusted sources or property experts.

5. Property quality

Take note of building materials used, especially if the selling price offered is relatively low. Also calculate the area of the property that is roofed. If the area size isn't significant, it is likely not to be too expensive. Check if the foundation is strong enough to support solid flooring, find out the age of the building, water pipe connectivity between upper and lower floors, to smaller details such as drying areas for laundry or hairline cracks on the walls.

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