How to calculate real estate depreciation

April 30, 2014  //  Posted by: cooldude  //  Category: Real Estate Rumblings

real estate depreciationEvery property, be it commercial or residential, undergoes depreciation with time and hence its value reduces. There are few factors which cater to this process by diminishing the value of your priced property. Are you trying to figure out the present value of your property? If so it is a must to calculate its depreciation as well to get its current market value.

Factors that affect depreciation:

1. Location: Where your property is located is a determining factor of its depreciation. If the property is located is a destination which is top notch, chances are high that you will get better value for your property. However if the value of location has reduced with time, then automatically, the value of the property will also get depreciated.

2. Economy: Next, the market economy is a factor which helps to regulate the price of your property. The better is the state of the economy; the higher will be your property valuation.

3. State: The state of the property is big factor on which its valuation will depend on. For instance, it can be located in a top notch area, but you haven’t spent anything on its renovations, the value of the property automatically goes down.

These are the factors on which the value of your property will differ. Now if you are ready to sell your property, the best thing you can do is get in touch with a real estate agent. They will help you make the task of calculating your property depreciation a lot easier, in turn helping you to determine the current value of your property. Finding good real estate agents is quite easy off late. All you need to do is look for reputed names near yourself, on an online platform. For better insight you can even go through customer testimonials to ascertain their efficacy.