Here’s The Criteria Estate Agents Use For Property Valuation
[This article is written by Guest Contributor Michael Evans from luxuaryproperty.com (Dubai). Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the view of newlaunchguru.sg.]
Whether you’re a homeowner in need of money or you’re a seasoned investor, you’d want to sell your property at a high price. And, as it happens, you’d likely end up hiring a real estate agent who gives you the best initial valuation.
When planning to sell your house, knowing its actual value matters a lot and if your estimate goes wrong then it is quite possible that you might end up selling your property for less than its actual worth. On the contrary, if your estimate is higher than the actual perceived value of the property, it will also deter prospects from even deciding to visit and view it. Furthermore, when the properties are overpriced, it leads to very long wait before you get a good offer.
So, you should not only choose the right real estate agent but should also know the factors that estate agents usually take into consideration for a property valuation. Here we have listed some key factors that usually contribute to determining any property’s value. Let’s have a look.
1. Local Amenities
A major factor in property valuation, which can actually take the selling price high up, is the area where it is located and the amenities available there. Different aspects like proximity to schools, banks, shopping malls, parks and restaurants matter a lot and they turn out to be the deciding factor in determining any property’s price. The houses that have enough transport links often get a higher price compared to ones that are situated in secluded areas.
When it comes to aesthetics, it’s not simply about keeping the house clean, tidy and well-maintained. In fact, there are quite a few other factors as well which turn out to be helpful in raising a property’s value. Homes that have some great views to offer – like beachfront condos – are always valued more than any ordinary properties. It is just like hotel rooms which have scenic views to offer outside the window as they are always priced higher as compared to those which have other rooms on all sides and no such luxuries to offer.
As far as property valuation is concerned, the size of the property is also among the determining factors and it is on top of the priority list for all estate agents. In fact, it’s not just about the number of bedrooms rather the space inside each of them also matters. So, here we are talking about the overall square footage and it widely determines the value of a property.
4. Kerb Appeal
Most of the real estate agents value properties based on how appealing they look. In fact, they think that the best properties are equally appealing from the outside as well as the inside. They layout of the garden, the floor plan, the furnishings, and everything else that most homeowners prefer should exist in a property for it to be priced higher. Similarly, if a home has great exteriors, it’s certainly going to fetch an amazing price tag at valuation.
5. Potential For Improvement
Let’s consider it from the aspect of size first. Even though the size matters, estate agents also consider how flexible a property is. They consider whether it could be extended if needed or not. Similarly, the potential for other possible improvements and renovation also contributes towards the final selling price of a property.
So, according to real estate experts at LuxuryPorperty.com these 5 points make the basic criteria on which most estate agents offer a valuation of a property. Make sure you know what your property is actually worth and not let it be over- or under-priced only due to a wrong valuation.