Whether you are looking at selling your own home or purchasing a new one, determining the estimated market value of the property you are selling or considering buying is essential. From a selling point of view, it helps you to market your pad at an appropriate price so that you can hopefully achieve what it is worth without selling it short. However, if you are in a position where you need to sell quickly, it also enables you to price it competitively so that you can secure an offer and move through the process at the speed you need. From a buying point of view, it is crucial to know the value of the home you are hoping to buy to ensure that you don’t end up paying more than it is worth. Doing so could potentially leave you in negative equity.
Fortunately, there are some things that you can do to help you in determining the estimated value of the home that you wish to sell or buy. Two of the most accurate ways to do this include:
Looking at similar properties
When you are figuring out the market value of your home or the home you wish to buy, it is very valuable to look at similar properties in your local area and see what they have sold for. Some of the things that you will want to consider comparing to ensure that they are like-kind properties include:
- Square-footage, particularly of the living area and surrounding land
- Number of bedrooms, bathrooms and living spaces
- What parking is available, e.g. garage, driveway and how many spaces there are
- The style, age and condition of the property. These will need to be similar to make an accurate comparison between your property and the ones you are using to gauge your property value.
Remember that you should use at least three comparable properties to help you come up with a likely range of the market value of your house.
Hire a realtor
Many people think that realtors are only there to show you around various properties and negotiate deals on your behalf. In fact, a great realtor is a mine of valuable information that can assist you with many different aspects of your property sale or purchase. One of the areas in which they are very knowledgeable is in determining the market value of each home. With extensive understanding of the location and their finger on the pulse of market conditions, they can give you an accurate estimation of what the home you wish to buy or sell is worth. This helps put you in a stronger position when it comes to negotiations.
Since lenders require an appraisal before they will approve a mortgage, your realtor can also put you in touch with a reputable and professional appraiser. Again, having the property appraised can place you in a better position when you decide you want to make or negotiate an offer.
If you are considering buying or selling a home and would like more information about the best way to determine the value of the property, our experienced realty team would be delighted to offer their support. Please don’t hesitate to contact us and get in touch with our offices to arrange an appointment.