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| How To Find The Value Of Your Real Estate (in Ten Minutes) | January 1, 2007, 6:00 pm | visits: 62 | wordcount: 711
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By Tuks Engineer
We've all heard it a million times before – "your property is only worth what someone is willing to PAY for it". And it's very true. But how can you determine what that dollar value is, quickly and for free? This article looks at some simple strategies you can employ in order to find an accurate valuation of your home or property.
** First – What Have Similar Properties In Your Area Sold For? And When?
It's plain common sense. To discover what prices your real estate may fetch now, you should look at what transactions have already taken place in your area. A few years ago a string of three properties along the same street were being offered for sale in my location – guess what? They all sold for about the same price (a 5% difference between the most expensive & cheapest) within a five month period.
Fact – what similar properties have sold for will give you a HUGE clue as to what you can expect for your property. It's a highly powerful indicator because it's factual. Someone has actually paid that amount for another similar property near yours – and no amount of guesswork, estimates or evaluations can give you a better clue as to how much your own property is worth.
Remember though that even similar properties may fetch different prices based on small differences. A house that has better internal décor will fetch a higher sum than one that has been poorly maintained. A house with a nicer garden may fetch a premium.
You should also consider the time at which the property was sold and the direction of the real estate market. If the real estate market is in a boom and the property you're comparing against your own was sold a year ago, you would expect to factor in a premium when considering your own home-value.
** Second – Get A Free Valuation By An Estate Agent
If you're not able to find a comparable property that has sold in your locality recently then consider inviting a real estate agent along for an evaluation. Remember though, estate agents are competing to get your house on their books so expect them to state a slightly higher price than what your property may really be worth.
** Third – Are Any Similar Properties In Your Area On Sale? What Are Their Asking Prices?
If you live in a busy city you're almost certain to find a property near you that's currently on sale. These usually appear in local papers (and often in popular online home sale sites). This can be a good way of finding a ball-park figure for your own property.
No Two Properties Are The Same – How Do You Compare A Property That Has Sold Recently (Or Is For Sale Now) To Your Own?
It's clear that what your property will finally sell for depends on a number of factors.
So how could these factors make your property fetch more or less than that of your neighbour…or the person who lives on the next street? Here are some factors to consider:
(a) Internal décor & garden – it's a fact that a nicely decorated house will fetch a higher price than a poorly decorated one. The same goes for a nice landscape – a little bit of a lawn and flowers can add thousands to the value of a property.
(b) Proximity to transport links & amenities – If your home is closer to train/bus stations, shops and so on it will have a higher valuation than a property that is further away. In London, a home just a ten minute walk closer to the underground can fetch several thousands of pounds more than the one farther away.
(c) Features – house features such as fountains, extensions, loft conversions and conservatories can add a lot of value to your property.
(d) Central Heating – in London, a property with central heating can fetch a significantly higher price than one without.
Ultimately, real estate evaluation is not a science. Market conditions and individual circumstances can play an important role in determining whether your property sells for what you believe it should.
About the Author: Find Over 50,000 Dirt Cheap Real Estate Bargains. Access The Real Estate Bargains Database
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