Knowing how much your property is worth is handy if you’re trying to work out your net worth or how much money you have to put toward a new house. But, of course, what you think it’s worth may not be the same as what it is actually worth.
That’s where this post could help. It explores how much your property is probably worth and what experts will tell you at the valuation. By the end, you should have a much clearer concept of what you have.
Get The Home Estimator Fired Up
As a first approximation, you might want to get the home estimator fired up. These usually take about 60 seconds to complete and rely on publicly-available data on prior property sales in the area.
These valuations aren’t 100% accurate but they can provide realistic information about what a property is actually worth. Then, it is up to you to decide if you want to take things a step further, or just stop right there.
These services are, of course, free. But at the same time, you may find that they are not really accurate, especially if there are some aspects of your property that are non-standard and not accounted for in the price.
Look For Comparable Sales
The other method is to look for comparable sales. You want to find out if anyone has sold similar properties in your area before, and what they went for.
You probably won’t find an exact match, but you will discover properties that are close. You can then use this information to determine what you should pay, given the pros and cons of the house you want to buy.
Just make sure you only consider sales made in the last six months or so. If they’re older than that, the price could have changed in the interim.
Look At Local Market Trends
If you spot something unusual about local market trends, you can also use this information. If prices are rising quickly, then that means you can often raise the price substantially today.
For example, suppose that experts think that prices will boom 20% in the next year. That’s usually worth paying a 10% premium for investors, since they want to cash in on the sales.
Get A Comparative Market Analysis
You could also look into the possibility of getting something called a comparative market analysis. These tools are helpful if you want to make sure that your property actually sits well with the rest of the market, and is in a condition where people are keen to buy. For example, your agent can tell you if you should get rid of the mustard-painted bathroom.
Hire A Professional Appraiser
Lastly, if you don’t feel like going through all that effort and work, hire a professional appraiser. They have years of experience that allows them to take multiple factors into account before deciding on a final valuation for your home. They take into consideration all aspects of the property to determine fair value.
Hi, I’m Eileen Adamson, money coach, empowering professional women to become happier, healthier and wealthier. By showing you how to make small, sustainable changes, I can help you create the financial security and freedom you deserve.
