Wondering what the ready reckoner rate or RRR  is? How is it calculated? And does it affect the real estate transaction? What is its importance for homebuyers? We have answers to all your queries. The confusion regarding the ready reckoner rate or the Circle Rate will finally come to an end as this blog will contain all the necessary details regarding that. Read on to understand the significance of the ready reckoner rate in real estate transactions, and how it impacts homebuyers.

Meaning of the ready reckoner rate

It is the minimum rate by which the government charges registration fees and stamp duty for any transaction related to buying a new property. The rate varies in the case of different areas depending on various factors. In other words, it is a benchmark in case of property buying or selling. And if the correct ready reckoner rate is known by the buyer, huge expenses on real estate can be minimised. 

The blog will provide important information about the ready reckoner rate through the following points:

Calculation of the ready reckoner rate

The rate is usually decided by the government and is used as a minimum value for all property-related transactions. In case you want to buy a flat in the city of Mumbai, then the minimum value of the property set by its government has to be paid as the ready reckoner rate. For instance, if you want to buy a property in Mumbai with a stamp duty of 5% and the valuation of the property is at 50 lakhs, then the minimum stamp duty that has to be paid will be Rs. 2.5 lakhs.  The rate is revised every year according to the market value.

Importance of ready reckoner rates for homebuyers

The ready reckoner rate plays a significant role in the real estate sector. A buyer should be aware of the rate of the area he/she is planning to invest in. As the market rate is always higher than the ready reckoner rate, it is always advisable to buy a property where the difference between the market rate and the ready reckoner rate is less. If this is ensured, it will help a person to gain more profit during the reselling of a property.

Tips to find the ready reckoner rate

Government websites help provide information regarding the ready reckoner rate of any area or locality. These are prominent websites and if a check on these rates is kept before buying a property, the homebuyers will be able to make a lot of profit.

Role of the government in the ready reckoner rate

It is the local authority or the state government that sets the RRR or the circle rate. As this is an important way of collecting revenue for the government, they make sure that the state does not lose important revenues. So, most of the transactions related to real estate are done in confidential areas and sometimes, the value is not disclosed. This is taken as a way of maintaining a deal of profit between the buyer and the seller.

Conclusion

So brace yourself and start researching before you start the adventure of buying your own dream house. Get the best ideas and find the best ways to save up on the ready reckoner rate and achieve a wholesome amount of profit through the above-mentioned things in the blog. Aim at prioritising your profit and providing yourself with proper guidance in case of investing in real estate. Consult with a trusted real estate agent or financial advisor to ensure you make informed decisions and minimise potential risks when buying a house.