Understanding What Your Property Is Worth


People have many reasons why they want their property valued. They may be planning to sell their property, be looking to remortgage, or they may be curious to find out how much a particular type of home such as Fourth Avenue residences condo is worth. Whatever the reason, there are many ways that one can find out the value of their home. Just imagine how convinced you will feel knowing that you are keeping up-to-date with your property’s current value. The satisfaction you’ll have, knowing that the property values quoted take into account such factors as the actual selling prices of similar properties in your region.

Property values have begun climbing out of their post-Recession trough about several years, and some neighbourhoods are skyrocketing. Always remember your property location is probably the most significant factor in deciding its value. It’s more important than condition or features and the square footage. Here are four fundamental ways of estimating your property price from the least to the most accurate. Their cost and level of efficiency may also differ.

Automated Valuation Model

This software can be found online for free, and they evaluate your property value by checking the determining trends and local listing and public record data and then implementing them to your property. If recently sold homes which are similar to yours in size in the neighbourhood are trading for ten per cent higher than they did when you bought your property, your expected price will presumably be about ten per cent more than your purchase price. This is a pretty necessary evaluation. AVMs are helpful for showing trends, the direction and extent of changes in area values, but they are not useful for evaluating the specific property.

Comparative Market Analysis

You can always get a free home value estimate from a real estate broker – they do them all the time for possible home sellers. CMA is only reliable as the agent’s understanding of the region – they usually make decisions based on their experience. Nevertheless, you should know that agents’ primary business is not estimating – they might overestimate your value to get your listing.

Broker Price Opinion

A probably more accurate method is paying for a BPO. This is where brokers with BPOR certification from the National Association of Realtors who have completed specialised training to do this task. The BPOs are usually commissioned by lenders to decide the price of the homes before they are put in the market to be sold. The lender has no requirement to accept the BPO value as true market value, however. The lender can use the BPO price as a guideline but might use other evidence to support a higher sales value to attempt to compensate its loss.

Home Appraisal

Home appraisers are highly-qualified, licensed experts who can determine an exact value for your home. If you genuinely want to know what your property is worth and willing to pay good money for that knowledge, then this is your system. They inspect and survey your house, noting its shape, facilities, and any concerns that might affect its marketability – design, environmental hazards, floor plans, renovations, funded maintenance, lot characteristics, and more. For example, if you want to sell your apartment in Belgravia Green or Treasure at Tampines Condo, it’s wise to get the property evaluated first by a qualified home appraiser to ascertain an accurate value.

Summary

The most important thing is to stay informed about the value of your investments. With these methods, you can keep up-to-date of property values in your chosen areas; correct property details with correct information, and view graphs illustrating the selling price trends for different towns and postcode bricks. If you’re just curious, check some AVMs to get a general idea. Ask a few agents for a CMA if you’re thinking about selling. Note that the price they come up with may be a bit higher. If you want your lender to approve a short sale, you’ll require a BPO. And last but not least, appraisals are almost always necessary when you finance property with a mortgage lender. You will almost unquestionably have to pay for it, and you have a right to a copy of the report.

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