Planning to buy a house or property? Find out the circle rate of your property to assess the value of your property in the best possible way. These are very important rates that every homebuyer should be aware of.
These rates are revised from time to time and varies from state to state and area to area. Knowing what they are will help you make better decisions when quoting a price for your property and help you save money as well.
Circle rate is the lowest price, or minimum price, at which the sale or transfer of a residential or commercial property can be registered before being sold or transferred, whether it is a plot of land, an apartment, or a built-up house.
Here are some important points to keep in mind about the circle rate:
Market rate is the price at which a property is sold. It is the final price that is decided between the seller/developer and the buyer.
Here are the important points to know about the market rate:
It is important to know the circle rate and market rate because it helps to understand the right price of a property. Since home loans are provided based on the sales deed, it is helpful if there is a smaller gap between the circle rate and the market rate. So, next time you’re planning to buy a plot or home, make sure that you know the circle rate of your area. That way, assessing the value of your property will be much easier.
The circle rate is the lumpsum price which is decided by the government on the basis of the current market value of the area which holds the property. On the other hand, the agreement rate is a rate on which the sale is after the agreement is made between buyer and seller.
The circle rate is known as the ready reckoner rate. It is basically a lumpsum price under which a property should be registered when being sold or transferred.
The revenue department of state government or local development authorities calculate the ready reckoner rate. This rate is calculated after taking into consideration the market value and the facilities present in the particular area.
There are various ways through which you can calculate the property value. Some of the ways can be using online valuation tools, hiring a professional appraiser, evaluation of comparable properties, and getting a comparative market analysis.
Home loans are available at fixed or floating interest rates.
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