If you are looking to buy or sell a house, flat, or building, one of the first things you need is to decide ‘How much is it worth?’ Surprisingly in today’s market, regardless of how much you think your property should be worth, everyone has an opinion. It makes the process more difficult and fraught with complications.
The value of your property will mostly depend on its condition and the local average prices. The critical thing to remember is not just the outlay you need to make but also the return on investment (ROI) potential. If you need to sell your home fast, Melbourne Property Valuers Metro will help you learn the fundamentals of how to value your own house. Take a look at the five simple methods for valuing your property.
Look up the Prices of Comparable Properties
You can find a ballpark figure for your home’s value by looking up the prices of comparable properties sold recently. Ideally, these homes should be similar in size, age, and location to your property. Here are some ways to find the homes:
- Check local property records.
- Use a tool such as Zillow’s Zestimate or the estimate provided by other companies such as Redfin.
- Check government records (such as county assessor websites) that list sales info for homes within a particular area.
- Ask a real estate agent—they’ll have an idea of what comparable properties are going for in your area.
Consider What You Have Invested in the Home
While it’s essential to know the value of your property, where should you go from there? First, consider what you have invested in the home and its equity. Next, consider your home’s projected value down the line. Maybe you see a trend in increasing property values in your neighborhood that could work if you decide to sell within a few years.
Perhaps a few improvements or renovations could raise the value of your property and make it desirable for future buyers (and more profitable for yourself). Knowing its current worth is always a good starting point when looking ahead at its future potential, no matter what direction you decide to take regarding your home’s value.
Look for a Professional Appraiser
Find a professional appraiser to assess the market value of your home. The appraisal cost will depend on the size and complexity of your property. It is an essential step because it provides a general idea of where you stand. A professional appraiser will visit your house and walk through it with you, noting buyers’ appealing features and amenities.
Once the appraisal is complete, you will be given a dollar amount for the value of your home based on the current market conditions. This number will depend on how much equity has been built over time by previous owners. Professional appraisers will be able to provide you with the most accurate, sure-fire way of getting an answer that you can rely on.
Use a House Price Index Calculator
A house price index calculator is a tool that lets you compare the value of homes in your area over time. It’s a quick and easy way to get a sense of what your home is worth; it’s a great starting point for developing your estimate of what your home would sell for on the marketplace.
Just enter your address, and the calculator will give you an estimated market value estimate. It might not be perfect, but it’s better than doing nothing! It relies on data from the housing market and analysis of recent sales in your neighborhood.
Why Property Valuation Is Crucial
Getting your property valued is paramount if you plan on selling it. This way, you can portray a reasonable and fair price, considering the property’s market value. A property valuation also helps you;
- Understand the state, structure, maintenance and quality of your property
- Ensure you reap maximum profits from your investment
- Get the exact value of your industrial, commercial or residential property
Property valuers can also offer insightful advice on property investments and the best strategies.
Predicting the proper market value of a home is, more often than not, an inexact science. After all, two people can look at the same property and draw different conclusions about its actual value. There are plenty of ways to prepare yourself to develop a ballpark estimate of what your home is worth. However, if you choose to go this route and hire a professional, ensure that you’re working with a trustworthy appraiser.