How Much Is Your Real Estate Worth?
One of the hardest questions to answer relates to pricing real estate. If someone walks in off the street with an address and asks us for a valuation, it is impossible to provide one without further information. This includes personally viewing the property as well.
There are a number of factors that go into the price of real estate. These factors include:
- property age
- property condition, including gardens and outbuildings
- number of bedrooms/bathrooms
- size of the property (land size)
- number, type and age of inclusions (dishwasher etc)
- the neighborhood’s reputation
- average prices in your area
- annual taxes
- location (you know the story – location, location, location)
Other factors such as basements and whether they are finished or not will also factor into the price of your property. Local issues can also have an effect. For example, if a freeway is planned a half a mile away, this may have a deflating effect on the price. However, if a large shopping mall, schools and public transport upgrades are planned, this could appreciate the value of your property.
There are larger issues that also have to be taken into account. If, as we see at present, it is a buyers market then prices will be somewhat deflated. National trends are also factors that come into play. Real estate agents can often provide a fairly good estimate of a home’s sale value, but it’s not until they see the property and do a full valuation that an accurate value can be determined.
If you are looking to sell your property, you can gain a very rough estimate by reviewing sales prices of homes that have sold in your area. Be careful that you are comparing apples with apples. If you have a three bedroom home on a small allotment, don’t compare it with a five bedroom home on a large allotment.
To gain an accurate estimate of your property’s worth, contact a real estate agent and obtain a full property valuation.
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