Property valuation is key to setting the right price for that property in an open and competitive market where there are hardly no second chances for not getting it right at the onset. In this article we take a look at ‘How Property Valuation Works’.
In transactions involving sales of houses, the first focal point is knowing your home’s worth so as to ensure you don’t keep going in circles in the course of the transaction.
Knowing the value of your property is sacrosanct if you are to have a successful real estate transaction. It is a determinant of what your property is worth in an open and competitive market.
What is a property valuation?
Property valuation is often produced as a report, a property valuation includes property information – rates, size of the land and building, physical details on the construction and condition of the dwelling, details on any immediate issues that may need addressing – as well as information on comparative sales in the area.
Knowing the value of your property before it is listed for sale is essential if you are going into that transaction with the hope of getting good returns on your investment. This also means that your property doesn’t stay for donkey years in the real estate market without a potential deal in sight.
Having said that, there are numerous factors that play a huge role in determining the current value of your property or your property’s worth. These factors are lord over your property and should never be neglected during the processes leading to the sale of your property.
That is why it becomes essential you employ the services of a real estate agent or valuer in your real estate transactions
A real estate agent usually has his ears on the ground. He is the information bank or maybe gossip columnist of the real estate business. Who else would you broker a deal with if not a real estate agent? They ensure your property doesn’t stay too long in the market
Selling or buying a home is not a walk in the park, it is in fact a complex venture. More reason you need a real estate agent to ensure the transactions run smoothly and keep things from spiraling.
However, it is essential to employ the services of a professional real estate agent who is quite conversant with the neighbourhood the property is situated, and not just any agent at all. Not even in a time when there are many quacks around.
A local agent will not only know how houses are valued in general, but they will also be familiar with the specific variables that will affect your home’s value. These could include the number of comparable homes for sale in your neighbourhood, how long these homes have been on the market and what the latest selling prices have been for comparable properties.
A good real estate agent will be quite familiar with the pros and cons of the real estate market. He has a good account of what’s obtainable in your area and knows the best possible price that will ensure your property doesn’t rot in the market
A good real estate agent or an real estate valuer will not set the price of your property too high to the point where you will only get onlookers and observers of your property and virtually no potential customers. Years later, when your home becomes a monument, the only people around your property will be sympathisers.
You know what happens to properties that have stayed too long in the market? People will begin to price it much lower as it continues to spend more time in the market because it will be assumed that something is wrong with the property in question because of the amount of time it has spent in the market.
Yet, there are also dangers in setting the bar too low; a low price could scare away buyers who may perceive that the property must have flaws or imperfections. A good real estate agent will be able to prevent both of these scenarios by helping you set the listing price as realistically and accurately as possible.
Regardless when valuing your property, aside comparing the prices of other properties in the market with yours, a good real estate agent considers the location of your property, facilities therein, proximity to a major road, market, schools, transport service, relaxation centres and other places of note.
The age and worthiness of the property also plays a huge role in the property valuation and how much rehabilitation the property has undergone over the years. Not forgetting the size of the lot and the level of aesthetics.
All these factors must be duly correlated with what’s obtainable in the market to determine the worth of the property.
Hence, you can’t sell your property without doing an appropriate valuation of it.