It is normal to not know the value of your property. Many people don’t know how to evaluate the value of their property as they don’t belong to the domain. But, if you are planning to sell your property, it is very important to assess the value of the home if you want to get a proper return.
There are multiple ways that can help you in measuring the value of your property. You can also look for the buying company and ask them what is the market value of your home. In addition to this, different websites and portals can also help you in making the right choice.
In this article, we have come up with certain steps that can help you to know about the cost and value of your property without any extra effort.
Sales comparison process
This is one of the most convenient and used processes to get the value of the property. As per this approach, you can know about the cost and value of your property, just by getting details about the price at which the similar property got sold in the market.
You need to follow certain steps to evaluate the cost of your property by using the sales comparison process:
- Try to list the features, benefits, and characteristics of your property. Under this approach, you need to include the total area, location, as well as the age of the property. You will also access the value of the property based on the number of bedrooms, and overall facilities and amenities available in the property.
- The next step is to know about the sales price of the three comparable properties that have been sold recently. In most ideal situations, 70% of the features of the property should match with the property that has been sold recently. Make sure to look for properties that are near your neighborhood or in the vicinity of the same location. Location is one of the most essential criteria’s that determines the value of a property. You can also take a look at the online property selling portal or the buying company to get details about the recent selling process.
- The last step is to do a quick calculation so that you can get a benchmark price for your property. If you have found three properties that were recently sold, you should try to keep a price for your property that is the average price offered by all these properties. You also need to take factors like the area, age, and the facilities of the property to get the best selling value for your property.
- The last point you need to take into consideration is to determine the final value of the property depending upon your personal experience.
Following all these steps will prevent you from overvaluation as well as undervaluation of your property.
Another major approach that can help you in determining the value of your property is the cost approach. The company uses the cost approach to know the value of the property. This approach is mostly used by those properties that have been redeveloped and no similar comparable properties are available for the. The cost approach is based on an approach that says that reasonable buyers pay more for an existing improved property rather than the price to buy a comparable property.
You can follow the below-mentioned steps to finalize the value for your property.
- The first step that you need to follow is to assess how much the property would cost if it was re-built. The property that will be rebuilt will be the exact replica with similar features.
- The next step is to know the depreciation value of the property. This means, the reduction in the value of a property due to wear and tear.
- At the end, try to arrive at a correct value after factoring the depreciation.
This approach is also used by the buying company to help you find the right value for your property. As per this approach, the value of the land and the value of the property are assessed separately. These values are added together to get a fair price of the property.
Contact the property buying company to know the value of your property
If you have tried all these methods of property valuation but you are still not satisfied, you can contact the property buying company to get details about your property. The property buying company has been in the business of property sale and purchase for more than 50-years and you can totally rely on them to get the best value for your property. Let us know if you need additional details. We hope you can find the proper value and market value of your property before you sell your property.