Commercial Property Valuation vs Residential Property Valuation

Anyone who is buying, selling or renovating property needs valuation of property. There are couple of methods for property valuations and the suitable method are used as per the criteria. Primarily there are two methods; each and every method has its pros and cons, which are residential properties and commercial properties. Evaluating both of them has wide differences. Also, depending on the type of method used, valuation of property can change.

Commercial property valuation

Commercial property valuation is based on the zones. There are certain factors while determining the value of the commercial properties. A commercial property does not mean only built-up units but consist of sectors which include investigation and developmental parks. While assessing the commercial factor the most essential aspect to be kept in mind is the trade/financial factors that the property generates. This is the main difference between the residential and the commercial property valuation. In today’s era there are several other factors that are taken into consideration apart from the financial factor. Also, factors that have devised the history of the structure are to be taken into consideration.

Another vital factor that determines the difference between the residential and commercial property is location and it use. Some of the factors that determine the valuations are age and condition of the building, carpet area, size of the property, assets of the property etc. Such things if not good in condition can be improved to add a value to the property.

While looking at the similar properties on the market one can determine on the market value, but when it comes to commercial property, it is hard to take this factor into consideration. In residential valuation one can get ideas by looking at the similar properties. It is difficult to get similar properties in the same area, not only the area, but the whole locality or the city.

Rent and other factors can be decided pertaining to the shops or offices rented in the same areas. However sale price and the market value of the property differ a lot.

Residential property valuation

Compared to commercial property valuation, valuating the residential property is an easy task. The most important factor is the comparison of the similar property in the neighborhood and the location. Also the valuation is carried out most probably in the similar manner as compared to the commercial properties. Basic factors to be kept in mind are kitchen and the bathroom, outdoor living areas, garage, civic amenities are to be taken into consideration while valuating the property.

Property valuers keep several things in mind while doing the valuation, however rigorous survey in the local area is mandatory in order to give up to date valuation report to the client.  Property valuation if done by the right agents, gives the perfect results. Also, being present at the valuation is mandatory apart from asking any of your relative or friend to be present at the valuation of the house.