Fair value to calculate the value of l& b- read more at: ht

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Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2013 fair value to calculate the value of L& B--

What will be the base in calculation of the Market Value of the Land & Building at the time of retirement of Partner / Deceased Partner?
1. Carpet area
2. Built up area
3. Super Built up area
4. What about FIS unused
5. Total plot area.

Sanket

Sanket (Expert)
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17 October 2013 One way of determining fair market value is to
hire an appraiser to evaluate the business
property. An appraiser is a certified professional
with training and thorough experience concerning
the various factors that determine the value of a
piece of property. It's important to find an
appraiser that specializes in business valuations,
if you're thinking about buying or selling
commercial property, to get a realistic market
value. In the case of real estate, the lender
requires a professional appraisal before
approving your loan to purchase the building.

Sanket

Sanket (Expert)
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17 October 2013 Comparative Analysis
You can also estimate fair market value of an
item by comparing the property in question to
other similar models on the market and
additional market considerations. In the real
estate industry this is called a comparative
market analysis (CMA)--it is commonly
performed by a licensed agent. The recent selling
prices of other similar items, whether the
property is a building or equipment, is a
reasonable estimate of what it would sell for if
placed on the market today.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2013 kindly give more clarification on the query

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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24 July 2024 When calculating the fair market value of land and building for purposes such as retirement of a partner or deceased partner in a partnership firm, several factors and methods can be considered. Here’s a breakdown of the options you mentioned:

1. **Carpet Area**: This refers to the area within the walls of a room or unit, excluding the thickness of the walls. It is typically used to measure the actual usable area of an apartment or building.

2. **Built-Up Area**: This includes the carpet area plus the area covered by the walls and other structural elements. It's essentially the total area occupied by the building structure.

3. **Super Built-Up Area**: This is the built-up area plus the proportionate area of common spaces like corridors, lobbies, stairs, etc. It is commonly used in residential apartments and commercial complexes where common areas are shared among occupants.

4. **FIS Unused**: The term "FIS unused" is not entirely clear in the context provided. If it refers to Floor Space Index (FSI) unused, it could imply the potential buildable area on the plot that hasn’t been utilized yet. However, this is more relevant in the context of development potential rather than fair market valuation.

5. **Total Plot Area**: This is the entire area of land on which the building is situated, including any open spaces and setbacks.

### Methodology for Valuation:

- **Usage Context**: The choice of area (carpet, built-up, super built-up, etc.) depends on the specific context of the valuation and the industry practices followed. For residential properties, super built-up or built-up areas are often used. For commercial properties, the usable carpet area may be more relevant.

- **Valuation Approach**: Typically, the fair market value of land and building is determined based on recent comparable sales (market approach), income generated (income approach), or replacement cost minus depreciation (cost approach).

- **Professional Advice**: It's advisable to consult with a qualified valuer or chartered accountant who can assess the property and recommend the appropriate method and area measurement based on industry standards and local regulations.

In conclusion, while each area measurement (carpet, built-up, super built-up, etc.) serves a different purpose, the choice of which to use for valuation depends on the specific circumstances and standards in the valuation industry. For precise valuation in the case of retirement or deceased partners, professional advice should be sought to ensure compliance and accuracy.