Whether you’ve just bought a house, planning on selling one, or are simply high on curiosity, every homeowner has had this question pop up in their head at least once – How much is my house worth?
As simple as the question might seem, a variety of factors are combined to reach an approximate figure. Being ridiculously optimistic with the price can have your home staying in the market for months even when you’re desperate to sell it, whereas being too modest could lead to big losses. So instead of relying on fanciful guesses, using a targeted approach for property valuation can help you make smarter decisions regarding your real estate choices.
Ways to Find the Valuation of a House
Here are some methods you can use to find how much your house is worth according to market standards.
Ask an Expert
Nobody understands what a house is worth better than the person who sells it. Real estate agents or locals working in the housing department can provide you with insights that are in line with the ground reality.
Since limitless variables have to be taken into account before a final decision has been made, place your faith in a well-respected agent to compare your property against those in the market. If you cannot find a trustable source, then refer to multiple professionals to receive a fair estimation.
Dig up Data Online
The greatest tool of the 21st century is the internet, so it is obvious that you would try to do elementary research regarding your home prices online. Indeed, many of the resources people need to determine the “real” value of a property are available on different websites, but take the numbers with a pinch of salt.
Instead of running to valuation calculators from the get-go, try to scroll through property listings that are similar to your establishment. Make sure that you’re narrowing down your search to your locality since, in urban areas, the whereabouts of your house play a much bigger role in its price compared to its size. This will help you understand what people in a similar situation as you are asking for and also let you put up a competitive figure in case you’re trying to sell.
Find Out the Market Condition
The value of a home is always prone to fluctuations. The state of the economy and the real estate market has a huge impact on the current price of your space. Thus, talk to trustworthy sources or read up on articles that might help you gauge the condition of the entire industry. This will help you modulate your expectations while valuing your home.
Be Open to Fluctuations
The truth is, that property valuation is an inexact science. While selling, an owner that is emotionally attached to an estate would quote a much higher price than an investor who is simply trying to cash out his/her appreciation. Additionally, vendor desperation is nearly impossible to quantify but it is a very relevant factor during property sales. Beyond the land value, people might be interested in the decor, heritage, or outdoor exposure of a house. This makes every house unique and leaves it at the mercy of competitive interest. Hence, try to look for price ranges and approximate rates to have a strong starting point for further negotiation.
It is important to find the real value of a home because, for many, it is the biggest investment of their lives. If you’re about to invest in a property, try to keep its appreciation tendencies in mind so as to beat inflation. In case of a sale, try to team up with a high-quality estate agent so that you don’t just know the actual price of your house but are also in a position to redeem it.