Whether you are looking at selling your home, or you have simply decided that you want to know more about what your property is worth, it is time to look into the value of the property that you own. Real estate is a tricky field and there are a number of different variables to consider with regards to the valuation of any property.
Compare and Contrast
When you are first looking at a piece of real estate to determine its value, start by looking up various properties of a similar size and appearance that have sold within the last six months. If you are looking at your own house, take a look at the houses around yours. In some cases, you will be lucky and the property in question will be on a track with many other examples of the same layout or floor plan. If you cannot find comparable pieces of property near you, you can expand your search, though this introduces a greater margin of error. When possible, stay close to home.
This phase of the valuation process requires some research from you. Take a moment to get online and to find houses for sale in your area. All the houses in one area tend to have features that make them comparable to one another, and the closer a house is to you, the more likely it is that the price will be similar. You can also contact a local real estate agent for recent prices of sold houses in the area that you live.
Once you have at least five to seven examples of properties that are similar to the one in question, add the values together and then divide by the number of samples that you have found. This gives you a rough average of what these properties are worth.
Now take a frank look at the property in question. Realtors often say that there are no two pieces of property that are alike, and the same is true for any property that you are currently looking at. What benefits have you added to the home? Things like new additions, pools or sheds can add greatly to a property’s value. Walled yards and extra garage spaces can also do a great deal to add to a home’s value. Conversely, there are also things that can pull away value, like damage to the home or a very small lot.
Once you have enumerated the additions and the problems, add them to the average that you have previously found. This gives you a very rough idea of what the property in question is worth on the current market. The more data that you have taken into account, the more accurate your reading will be.
Remember that there are many different variables that can affect the value of a piece of a real estate. When in doubt, speak to a professional and get a professional assessment done. This ensures that you won’t sell a piece of property for far too little money.