QUESTION & OPINION
– B. Kanaga sabapathy
A proposed scheme of total 50 residential flats is under construction where the builder has executed an agreement to sale for 20 flats and for the remaining unsold 30 flats builder wants finance on that. The builder has approached us for a valuation report of unsold units.
The builder has provided us unit/flatwise super built-up area, built-up area, and undivided share of land. For such type of assignment which method of valuation is to be adopted
– Super built-up area composite rate method or
– Calculating uds of land with a market approach for unsold units and built up area with cost approach?
The current status of construction is 3 floors only RCC work is done out of 13 floors.
An article “Valuation of unsold flats as security purpose – Procedure” written by me is given in the attachment and I am sure you will get the answers for the questions you have raised. Please take it for overall guidance and you may apply judicious mind for any particular problem.