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Most people don’t give much thought to owning a piece of real estate, even if it’s in a prime location. For them, it is more of a home than an investment in the future but it couldn’t hurt to know what you have expressed in a numerical value. There comes a time when you won’t be living there anymore so it is good to know how to accurately determine the value of your home.

There are many fraudulent buyers out there who will do their best to diminish the value of your real estate and it is up to you and your realtor to keep things real. If you are wondering which factors you should look for when determining the value of your home, here are a couple of useful hints.

A look into your neighbour’s yard

We have been rightfully thought by our parents to mind our own business and for a good reason. However, in the world of real estate, there is nothing wrong in taking a look into the property out neighbour own. We are not referring to our next-door neighbour but all the housing units on our estate. These are called “comps” because they are fairly comparable with what you own. Of course, there are no two properties that are completely the same but here are homes that are similar to ours. Going through the ads or asking around real estate agencies should give us a decent estimate of what to expect in terms of price in the case of our property. And remember, even the smallest changes can make the difference.

Asking for BPO

Apart from the local real estate agent, another person that can appraise out property is a broker. They are usually hired by real estate agencies to determine the market value of a home when the market is highly competitive. You have the possibility to circumnavigate the realtor by approaching a broker directly and asking for a broker price opinion (BPO).

They based their estimate mostly on the price similar homes (remember comps) have been sold for recently. The stress is on the word “sold” because the asking and the selling prices are two very different things. The final tip is not to approach national or international brokers but go for local ones.

Conducting a building and pest inspection

Another important issue that future homeowners will bring up is the amount of money they need to invest in the house. This has the potential to bring down the price significantly so don’t let them downplay your property. Conducting a detailed building and pest inspection will reveal all the flaws of your property so you’ll know exactly what it is that you are marketing.

In most cases, experienced builders who have an eye for the detail will conduct this pre sale building inspection that will reveal if there are any structural problems with the estate. These include cracked support beams or a rat den somewhere in the basement. Once your home has been clear, you are ready to ask for more in terms of the final asking price.

Going pro

So far we have been talking about self-appraisal, realtor’s estimate, and the broker’s opinion. However, there are agencies that offer professional appraisals. If you have other, more pressing matters to deal with, then soliciting their services might be a smart decision to take. They will look beyond the local real estate market, accounting factors like the land your house is built on, the neighbourhood, possible home improvements, etc. You know well that a backyard pool raises the value of your property but the exact amount can only be determined with some professional help.

Online home valuation tools

In recent years, the Internet saw the launch of several appraisal websites like Zillow or Redfin. Apart from operating like real estate agencies, they offer the possibility of an online calculator of an app that will help you determine the value of your home as accurately as possible. All you need to do is input all the variables like the size of the home, its location, year of construction and similar data in order to get an estimate.

These online tools and apps act as computer-guided brokers that determine the value based on the same set of parameters that a human broker would do. However, the number of variables that are impossible to be inputted and the ever-changing market conditions make them somewhat inaccurate. That is why these tools should be used mainly for preliminary estimates before the house is up for sale.

If you are seeking a simple answer to the question of why it is important to determine your home’s value, the simplest answer is money. Whether you are selling or taking out a mortgage loan, you need to know the true value of what you own.

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