Real Estate Appraisal: What It Is and Why It Matters

Setting the right price for your property is one of the most crucial steps in creating a successful listing. Overpricing can drive away serious buyers and drastically reduce inquiries, while under pricing may cause you to lose out on potential profit. To avoid these pitfalls, following a structured real estate appraisal process becomes essential. Infinity Housing explains how proper property valuation helps you quote the most accurate and competitive price.

Real estate appraisal—also known as property valuation—is the process of determining the current market value of a property. Whether you’re unsure about pricing or simply want a professional opinion, a thorough appraisal ensures your property is showcased at the right price, increasing your chances of attracting genuine buyers.

Two Common Methods of Property Valuation

1. Fair Market Value (FMV) Method

The FMV method is widely used for ready-to-move-in properties due to its simplicity and accuracy. It involves evaluating comparable properties that meet specific criteria:

• Located in the same or nearby area
• Listed within the last 1–3 months
• Similar size (sq ft)
• Similar configuration (e.g., 2BHK, 3BHK)

After identifying comparable listings, you then consider premium factors that add value to your property, such as:

• Preferential Location Charges (PLCs) — park-facing, higher floors, corner units, etc.
• Luxury upgrades — premium flooring, modern kitchen, brand-new interiors
• Added amenities — clubhouse access, gym, swimming pool, private garden, etc.

These factors help you derive the Fair Market Value of your property, ensuring your price aligns with current market trends.

2. Land and Building (L&B) Method

The L&B method is more technical and typically used for:

• Under-construction properties
• Newly completed units
• Ready-to-move properties that require professional appraisal

This method separately evaluates:

• Land value
• Cost of construction

Appraisers also verify important legal documents such as the title deed, property tax records, mutation certificate, and other identification papers to ensure accuracy and transparency in the valuation process.

Why Getting Your Property Appraised Makes a Difference

Although property appraisers may charge between 0.1%–0.3% of the property value or a fixed fee (usually ₹10,000–₹20,000 depending on the property type), the investment is worthwhile. A professional valuation:

• Helps you quote a realistic and competitive price
• Ensures you don’t lose money due to underpricing
• Boosts your chances of a faster sale
• Helps attract serious and financially capable buyers

With the right pricing strategy, you can market your property confidently on Infinity Housing and maximize visibility as well as the final deal value.

Frequently Asked Questions (FAQs)