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The value of a house is sum together of the value of both house and land attached to it. You can never separate either of them. Unless both are perfectly matched and in tune, the value will never increase. It may happen that your house is excellently designed, has an attractive look, has best finishes, but if it is located in an area which is not considered good or the plot has basic discrepancies, the house will lose its value and even it may nor fetch its basic cost or cost of replacement as on date.
Similarly, a poorly designed, small house with poor specifications but situated in an aristocrat or good locality will not fetch a value of the house. At the most, it will fetch a value of land only. The house may get its scrap value only, because in this case component of land value would be proportionately more than the value of a house.
Therefore it has to be a right balance between both land and house in terms of its location, locality, area, type of house etc. The perfect harmony, on the contrary, will add additional value to the sum of both land and building.
Courtesy - 123rf
Hence, the value of house will be governed by 3 major factors
01. Factor affecting the value of land.
Also Read: 29 factors that can Envolves your Land value
02. Factor affecting the value of a house, which is described herein.
A. Architectural Aspects:
- General light, air and ventilation in house
- Overall look, aesthetics from all four sides
- Ornamental and decorative features
- Functional hierarchy
- Carpet area or usable area efficiency
- Height of floors
- Type & location of staircase, its width, height or risers (whether more than 6”–15 cm)
- Critical dimension like Height of balcony and stair railings, the width of doors, passages.
- Margins from front/side roads and from adjoining buildings.
B. Structural Details:
- Type of construction whether RCC framed structure or load bearing or mixed or wooden framed etc.
- Quality of construction material, workmanship and specifications of materials used
- The quality of finishes like flooring, painting, doors, windows, toilets etc.
- Quality and type of finishes of water supply, sanitary, electrical fixtures, door/window and its hardware
- Whether the finishes of flooring, bathroom, painting, doors etc., are as per the need of the house. Do they look outdated or out of time.
- Total area of construction, area of each floor, its carpet area
- Whether the construction area, no. of different rooms meets your needs and is your budget in harmony with it.
- of stories i.e. Ground, Ground + 1, Ground + 2 etc.
- Sizes of the different room, No. of rooms, room with attached toilet, balconies. No. of bedrooms, other rooms like puja room, servants’ quarters, store room, wash for kitchen and drying area for clothes.
- Whether 24 x 7 water is available, the size of underground & overhead water tanks, borewell etc.
- Parking facilities available including covered parking, garage etc.
- Compound wall, its type of construction, height, gate etc.
- Landscaping around the house, garden, greenery etc.
- Whether there is “inbuilt” furniture like cupboards, kitchen racks, Shutters over loft etc.
- Is sewage disposal to the public sewer or to a septic tank & soak pit?
E. General Condition and main tenancy:
- Structural audit of the house w.r.t. settlement of foundations, cracks in walls, RCC elements like slabs, beams, columns etc., onset of corrosion in RCC elements.
- Whether there are any leakages from a roof, toilets, external walls or dampness in walls, roof etc.
- Whether there are any efflorescence, termite effect etc.
- Whether the building has undergone any major repairs?
- Conditions of the house and maintenance carried out periodically.
- Major additions / alterations carried out, if any.
- Minimum capital repairs required if any
F. Age and future life:
- Age of the house / Year in which construction was carried out
- Future estimated the life of the building.
- Its original cost of construction
- Services available or absent, fully, partially
- Whether area of land and area of construction are in harmony. Too big house should not be on a small piece of land. Though reverse is fine, still a small house may be there on a large plot of land.
03. How the right harmony adds additional value.
The right harmony between land and building adds additional value:
- Area of both should be rightly proportioned i.e. very small house on a large plot or a very large house on a small plot is not desirable in general.
- Its nature of construction, quality of finishes and materials should be in line with locality. The buildings with super extraordinary fittings, finishes in a poor locality may not add value to the house.
- If the building is too old and needs major repairing or not as per the need of modern times, it may fetch only scrap value of the building.