Institute of Engineering
A
VALUATION REPORT
OF
THE PROPERTY OF
MR.MADHAV GYAWALI
WARD NO: 3, KATHMANDU
Submitted to:
Submitted by:
Mr. Puspa Das Mulmi
VidhanAryal
(Department of Civil Engg)
(066/BCE/ 144)
Date of Submission:
Jul 22, 2013
ACKNOWLEDGEMENT
I would like to express my deep appreciation to Er. Puspa Das Mulmi
providing us an opportunity to prepare a report on Valuation which is present under the
subject Construction Management in 8th semester. This will certainly provide knowledge to
face the difficulties in the real field.We were given an assignment to valuate a residential
property of our choice and prepare its complete valuation report.
I would also like to express my gratitude to all my friends for providing me a sample
valuation report and their supporting mefrom beginning to completion of the report
without which it would have been difficult for its preparation in time.
Finally I would like to apologize for any errors and mistakes in this valuation report as
it was meant to be a part of learning process.
VidhanAryal
066/BCE/144
1
VALUATION CERTIFICATE
A valuation report of this property has been prepared on the basis of an examination
of the relevant land ownership paper, available cadaster map, physical verification of the
site, detailed discussions with relevant persons and on prevailing norms as well as
procedures that I have involved through my various experiences.It is my considered opinion
that the valuation of the aforementioned property is Rs.2,19,34,801and in words :
TwoCrore, nineteen lakhs, thirty four thousand, Eight Hundred and one
I also hereby, declare that I have no direct or indirect interest in the property that has been
valuated.
VidhanAryal
066/BCE/144
2
TABLE OF CONTENTS
ACKNOWLEDGEMENT 1
VALUATION CERTIFICATE 2
TABLE OF CONTENTS 3
3. Summary of valuation 8
4. Appendix 9
Appendix I:Introductory details about the property in the name of Mr. Madhav Prasad Gyawali 9
Appendix II:Technical details about the property in the name of Mr. Madhav Prasad Gyawali 11
3
1. Description of the property:
A. Property inspection:
On the request of PulchowkCampus(IOE), the property belonging to Mr. Madhav Prasad
Gyawali, located in ward no. 3,Kathmandu Metropolitan was inspected for valuation on 20th
July 2013, as property evaluator. The property that was inspected consists of a good house
on a plot of 9 aana,1 paisa,1daam i.e. 3118.14 sqft
The inspection visit revealed the following details:-
The property, as has already been mentioned in discussion has direct access to the
main road of 8ft 3inch.Bituminous Road
The approach road to the plot is on the N-S direction,
B. Property description:
i. The property that was inspected and has been valued comprises of rectangular
shaped, flattish property on which is a two and half storied residential house.
ii. Type of property: Private.
iii. Land details:-
a. Shape:- Trapezoidal shaped
b. Topography:- Flattish
c. Frontage:- 43 ft 5 inch
iv. Services:-
a. Water Supply: Yes
b. Electricity:- Single phase connection from NEA
c. Sewerage:- yes
d. Telephone: Yes
v. Immediate Environment:-
4
The immediate environment are residential area in all directions.
vi. Site constraints:-
No any transmission line of electricity, no landfill site of solid waste nearby.
C. Value calculation:
5
i. Valuation of land:
The valuation of any land is very depended on a number of important factors
such as the location, environment, size and shape of the property as well as the
supply and demand economics prevailing during the time of valuation.
The final scale figure is very depended on who is more desperate the buyer or the
seller. Generally speaking, the scale figure tends to be arbitrarily on the high side.
The scale figures can be referred to as Commercial Values.
With reference to the property under discussion, the value of the land has been
determined By using the weighted average method where 10% weightage has been
given to the value fixed by the government, 30% weightage to the commercial value
of the land fixed on the basis of market survey, our spot valuations and comparable
valuations and 60% weightage has been given to the distressed value as
determined by our past experiences. In the case of highly desirable areas, the
distressed value tends to be quite close to the commercial value. The different
values that have been considered in this valuation exercise are as follows:
By the weighted average method, the price of the land has been taken to beRs. 25
lakhs per Kattha. (Calculation shown in Appendix V: Land Value Calculation)
6
ii. Valuation of Buildings:
As it has already been mentioned a two and half storied house.The floor plans and
site plan are given in appendix. The detailed description of the building are as follows:
Walls: Walls are made of local bricks in Cement mortar and internal and external
wall surface plastered with cement mortar. The plastered surface has been
painted.
Floor: Ground floor is solid floor type and neat cement finished and floor is RCC
floor slab.
Ceiling: The ceiling have been plastered and painted.
Doors and Windows: The doors and windows frame are of salwood. The window
shutter frames are also salwood. The shuttersare glazed. The windows have
grills, External doors have panelled shutters.
Roof: The roof is RCC.
Sanitary:Three bathrooms and two kitchens are fitted with standard sanitary
essentials.
Electrical: Wiring is sub-surface wiring. The electrical fixtures are of ordinary
type.
S.N. 1
Age of the building 1
Plinth Area (sqft) 1094.92
First Floor Area (sq.ft) 1039.78
Second floor Area (sqft) 720.01
Prevailing plinth area rate/sqft Rs. 2,500
Value in terms of civil works Rs. 7,136,775
10 % of cw for sanitary Rs. 713,677.5
8% of cw for electricity Rs. 570,942.0
Total Cost Rs. 8,421,394.5
Depreciation rate/annum Rs. 151,585.10
Depreciated rate (Rs) Rs. 151,585
Present net value of building
Rs. 8,269,809
after deduction of depreciation
7
3. Summary of valuation
Thus the value of the property belonging to Mr.Ghanashyam Prasad Dahal can be
synopsised as follows:
1. Value of land= Rs.1,36,65,000/-
2. Value of building= Rs. 8,269,809/-
8
4. Appendix
Appendix I:
Introductory details about the property in the name of Mr.Ghanashyam Prasad Dahal
11 Site services
Water supply 6 inch pipe connected
Electricity Yes
Sewerage system Yes
Telephone line Yes
12 Site constraints(such as overhead high tension No
line, noise pollution, proximity of river, etc.
13 Classification of locality Middle
High/middle/poor/mixed class
14 Proximity to civic amenities like school, offices, Very Near ( 121 m)
hospital, commercial areas etc:
15 Agreement of easement: No
16 Is the property situated in residential, Residential area
commercial, industrial mixed
9
17 What is the floor area ratio per ,meter and
percentage actually utilized
18 Name of the tenant No
19 Monthly rent No
20 Give details of water electricity telephone No
charges
21 Has the tenant to bear the whole or part of the No
cost of repairs and maintenance?
22 What is the amount of property tax? Who is it Rs 1428
to bear it?
23 Is the building insured No
10
Appendix II:
Technical details about the property in the name of Mr.Madhav Prasad Gyawali
i. General description
v. Other features:
12
Appendix III:
Land ownership certificate
13
Appendix IV:
Citizenship certificate
14
Appendix V:
Land value calculation
1) Instances of sale of land in the locality if available date of sale price and area of land
sold: X
2) Comparison of the concerned land with the sold land as stated above:
better/similar/inferior/not applicable
3) Minimum registration rate as fixed by government: NRs. 8,00,000.00 per aana
4) Current market rate recommended by real estate company/ broker : NRs.
20,20,000.00 per aana
5) Distressed value= Rs. 14,80,000.00 per aana
Rs.(0.1*.8+0.3*20.2+0.6*14.8) lakhs
Rs. 15 lakh per aana
LAND VALUE
15
Appendix VI:
Depreciation calculation
= 1.8 % /annum
Total depreciaton =1.8/100*Rs84,21,394.5* 1
= Rs1,51,585.10
16
Appendix VII:
Land area calculation
The land being trapezoidal in shape, the area of land was simply calculated by formula of
triangles and rectangles
Area of rectangle:L*B
17
Appendix VIII:
Building area calculation
18