Purchasing a property is an investment. In the majority of cases, houses increase in value after a couple of years. A home valuation allows you to determine the market value of your property for different purposes. The most common reason for home valuation is for selling your property, but it can also be for the purpose of obtaining a secured loan from an institution placing the home as collateral. Other reasons might be after having performed some refurbishment tasks on the property.
Estimating property value
It’s necessary to know a property value, regardless whether you are a buyer or a seller. Each property has a different market value and sales of similar properties continuously pushes prices up or down. You can find home value websites that provide a range of property price estimates and reports to obtain average sale prices or price growth history for properties located in the vicinity of the house you’re seeking to value. Property valuation is often undertaken according to the standard codes of the Royal Institute of Chartered Surveyors (RICS). It includes :
- The age of the property
- Features and fixtures
- The type of building and overall condition
- Amenities in the surrounding
- The neighborhood
Using real estate agents
Estate agents can provide a market appraisal that usually includes comparable recent sales in the neighborhood, however, some estate agents often provide inflated appraisals to obtain your listing. Others, genuine and professional real estate agents offer free market analysis generated by major property data providers. The report often includes area photos, boundary maps, and property sale history.
Sworn property valuators
Professional lenders often use the service of sworn evaluators. These evaluators use methods such as :
- Electronic, desktop valuation
- Drive by valuation
- Physical valuation
- A combination of the above
A single evaluation may cost up to $500 and is often paid for by the borrower. The service of sworn evaluators can also be sought if you are selling your property.
Sites like Zillow provide free online property valuation and also offer houses for rent or for sale in neighborhoods that might interests you. If you’re a property owner, you can use Zillow to post your property. The home valuation provided by Zillow is very accurate. It allows you to make a reasonable listing of your property.