Six important Purposes of Property Valuation | Building Estimation and Costing



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.

Building Construction
Building Construction

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

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.

Taxation

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.

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.

Security of loans or 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.



25 thoughts on “Six important Purposes of Property Valuation | Building Estimation and Costing”

  1. Is this site only for engineering student cause me i want to know more about valuation for estate management
    . Tanx

    Reply
  2. It’s hard to find knowledgeable people for this topic, however, you seem like you know what you’re
    talking about! Thanks

    Reply
  3. Hi,
    First of all i must say what ever i know about Construction, is all from your web site. its really a great Favor for non Technical man like me.
    My request is for the idea for a College building of Size 75×60 ft of Three floor having 6 class room of 25x25ft with 10ft corridor. What will be the minimum number and size of Column and Beam?
    Best Regards,
    Rajiv

    Reply
  4. Valuation becomes an even larger part of the understanding of how a project works once you get out into the real world and so much hinges on it’s accuracy.

    Reply

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