Building Estimation and Costing
Building Estimation and Costing is a vital part of Civil Engineering. No project can begin without the total Building Estimation and Costing done by the Engineer. The entire Cost of construction and the infrastructure used for the purpose of construction is estimated and the final costing is done on the basis of which a certain percentage of the Project cost is paid to the Engineer, the Architect and other consultants involved in the project.
Valuation is one such important part of Building Estimation and Costing. Valuation is done after the project is complete on the latest trends of the land prices in the market.
In this article, we will discuss what is Valuation and the six important purposes of Valuation.
Valuation is the technique of estimating and determining the fair price or value of a property such as a building, a factory or other engineering structures of various types, land etc.
Six important Purposes of Valuation
The main purpose of valuation are as follows:
Buying or Selling Property
When it is required to buy or sell a property, its valuation is required.
To assess the tax of a property, its valuation is required. Taxes may be municipal tax, wealth tax, Property tax etc, and all the taxes are fixed on the valuation of the property.
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.
Security of loans or Mortgage
When loans are taken against the security of the property, its valuation is required.
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.