How to assess the market worth of your home?

The process of selling a house consists of numerous phases, one of which is the price appraisal of the property. To determine the selling price, home sellers often compare the appreciation value to the purchase price, although this entails several factors. 99acres outlines several essential criteria that should be taken into consideration while estimating the value of a property.

While calculating the price of a home, most of the sellers forget that the worth of the property is not only based on what they initially paid for the house or the amount they have spent on its refurbishment. A property’s market value is what a ready and willing buyer would pay.

What is the current market value of a house?

The market value of a home is the price at which it would sell under normal circumstances. This eliminates transactions that occur as a result of unanticipated events such as relocation, the death of a family member, or any other emergency in which the seller is obliged to sell the property. The market value of a property is based on the following factors:

External factors

Which include value of the building, its visual appeal (attractiveness when viewed from outside), water facility/sewage system, architectural style and pavement.

Internal components

Internal characteristics including building quality, size of the property, number of rooms, whether decorated or not, and condition of home appliances, among others, have a direct influence on the market value of the property.

Location

The location of a property is always an important component in determining its market value. Residential property valuation considers elements such as how developed, safe, and calm the neighbourhood is, prominent landmark(s), closeness to municipal facilities, transit network, and beautiful vistas.

How do you calculate the market value of your property?

Look for comparable houses that have recently sold in your area or adjacent locations. ‘Comparable’ properties are those that are similar in size, style, age, and location. If you have employed a broker, he will aid you in this search. If you have not yet recruited somebody, conduct an internet search and analyse existing ads in your region or community. Speaking with local dealers or neighbours might provide you with an idea of the price range of a comparable home in your region. 

Now, choose three comparable houses which are equal in each and every characteristic of your property such as age, size, amenities and style. In case you are unable to discover it, you will have to make modifications in the sale price. For instance, a house identical to yours with greater facilities would be priced higher. Likewise, a property with no parking or garage would be less expensive. As a result, you will need to alter the sale prices of all three similar houses.

In most circumstances, a broker helps find the most acceptable sale price. Regardless, rigorous study should be conducted over time to understand market dynamics, pricing trends, impending projects, and connecting points in order to appraise the property and make a no-loss sell.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.