When you decide to put your property up for sale, the first thing you need to do is get a property value estimate done. To calculate the value of a property, you need to consider a number of factors, which may be direct or indirect in nature. While direct factors include location and square footage, indirect factors may include real estate climate market and demographic changes.
Commonly Used Method For Property Value Estimate
The most accurate and commonly used method for property value estimate is the Comparable Sales or Market Comparison method. In this method, the sales of similar houses in the neighborhood over the last six months is identified and recorded, and the value of your property is suitably assigned. For instance, if properties similar to yours have been sold in the neighborhood in a range varying from Rs. X to Rs. Y, then the value of your property will also take the range from Rs. X through Rs. Y.
Factors That Matter
Start By Finding The Rates In The Neighborhood
You can either run an online search or directly visit the website of your local government or municipality to determine rates of neighborhood properties similar to yours. It’s likely that the rates are determined by numerous agencies, both government and non-government. You need to record those rates, which often take into account factors such as square footage and the number of facilities.
The Physical Dimensions Of Your Property
- Square Footage: To apply the rates/sq. foot in your neighborhood to your own property, you must first be aware of the square footage of your property. Be sure to have it measured.
- Location: It’s one of the most important factors. Typically, over a kilometer radius around your property is in consideration. The presence of facilities such as parks, schools, and bus stops add to the value of your property.
- Bedroom-Hall-Kitchen (BHK): In addition to square footage, the BHK of a house is very important. It’s used like a unit. In common parlance, properties are identified as “2BHK” or “3BHK,” meaning that there are 2 bedrooms, a hall, and kitchen, or 3 bedrooms, a hall, and kitchen.
The Economic And Real Estate Climate
This is an indirect factor, as it doesn’t influence the value of your property directly. When the economy is looking up, there is an increased flow of money, resulting in increased purchases of property. Similarly, in times of economic gloom, the property purchases reduce. In either situation, the market value is influenced. The price of properties increases when the number of homes available for sale does not meet the demand. On the other hand, the price decreases when there are more sellers than buyers.
Since getting a property value estimate done is essential for a smooth sale, you should not ignore these crucial factors. Take them into consideration, arrive at a value, and you’re ready to make that sale!
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