Have you been trying to figure out the exact price value of your house? It may seem like all the information is available on the internet and at your fingertips. But the result is quite contrary, as there isn’t any reliable tool that can give you the exact price of your house. They all seem biased one way or another.
So how would you tackle this sticky situation? These values are extremely necessary for mortgage lenders, investors, insurers, buyers and sellers of real estate property. Fret not, because below are 4 easy ways to determine your home value all by yourself.
1. Sales Comparison Method
This method is really useful in valuing single-family homes and lands. It involves gathering data on all the recent sales of properties, which match closely to the characteristics of the house being valued. In other words, you need to get some market data about the houses that have similar specifications to yours and is being sold in your neighborhood.
2. Automated Valuation Models
Although these models follow a generalized approach, they get the job done and give you an estimate on your property’s worth. These AVM evaluators have access to a wide range of data such as sales, prices, taxes and such. However, this model doesn’t account for the latest improvements. So your best bet is to use several different AVMs to get the estimate.
3. Cost Approach
This approach seems to be the most efficient. It considers separate estimates of value for the building, the land, and depreciation. The basic idea behind this is that the buyer would not pay more money than what it would cost him to buy a land and construct the building that is comparable to the one in question. Depreciation also adds to this as it considers the state of the property, whether it is deteriorating, curable or incurable.
4. Competitive Market Analysis
CMA involves the help of a real estate agent to determine the value of your house. The real estate pro will do all the market analysis for you and also consider the appreciation rate of the location of your property to zero in on the exact price that your house would cost.
Always keep in mind that no two houses are exactly the same. They will have dissimilar structure and features, which will constantly affect the pricing. It is up to you to keep a track of these fluctuating prices and come up with the exact estimate of your property in the current real estate market.
Surbhi Singh is a content executive at commonfloor.She is knowledgeable and familiar with the Indian real estate market.She blogs on Indian real estate properties,news,price trends,etc.