Aspects of Home Valuation
The home valuation process is often overlooked by many people. They usually find a price attached to a home and accept it as it is, without knowing how the value was arrived at. Whether you are buying or selling a property, you need an accurate understanding of the property value as well as how the value was arrived at.
Since time immemorial, evaluation was linked to a number of considerations including the condition, the location and the age. Usually these are carried out by professionals who knew the real estate market. Let us a look at the different factors that make a home evaluation successful.
The Square Footage
The total area of the property has a direct impact on the asking price of the property. A bigger home commands a higher price as compared to a smaller property in the same location.
The only issue that might affect this factor is if the larger house is in a form of disrepair which means it can be valued less than a smaller home that is in perfect condition.
The square footage affects the available space for other tasks. For instance, having enough space gives you somewhere to park your cars. You also have enough space to extend the home when you choose to.
The neighborhood as well as the location of the property factors a lot when it comes to the value of the property. The crime rate, condition of the road, noise levels, surrounding development as well as access to important facilities such as health centers and malls impact the cost of the property.
Generally, a small home in a great neighborhood costs more than a larger home in a poor neighborhood.
The property evaluator ascertains the price of the property by considering the prices of related properties in the area. Properties on a certain street might be more costly than same properties on another part of the street.
Age has a big bearing on how much a property can go for. Though older properties come with an innate charm that new buildings might not have, they might be in need of extensive repair work to keep them in the right condition, which lowers their value.
When purchasing the property, it is vital that you take time to know what goes into the property evaluation process so that you understand why you are paying such a price.