How Can You Work Out How Much A Property Is Worth?

If you are going to be selling your home, you will want to make sure that you put it on the market at the right price. To do this, most people will get a valuation from their real estate agent. However, is this really enough? Rather than relying on one person’s opinion, it is also a good idea to do your own research so you can get a good understanding of the valuation.

Doing your own research is not only beneficial if you are looking to buy a home. If you want to quit rent and buy your own home for the first time, knowing how to get a good understanding of a property’s value can help. If you are thinking about investing in a property, it is a good idea to do your own research so you can determine whether the valuation makes sense. Doing your own research on the value can help you to determine whether there are any rooms for negotiation. 

So, what are some of the different things that you can do to get a good understanding of the right value for your property? 

Find out what properties are selling for in your local area

One of the first steps to take is to find out what properties are selling for in your local area. You can use real estate portal websites to acquire this information. It is not as difficult to get data on properties as people think; a quick search online is all that is required!

When you are comparing properties in your local area, it is vital that you are doing so on a like-for-like basis. Therefore, you should be comparing three-bedroom detached properties with other three-bedroom detached properties.

If there are a lot of homes within the area, you should be able to come up with a comprehensive set of figures on what similar properties in the area have sold for or are on the market for at the moment.

It is likely that you may see some differences in prices. For example, there could be a three-bedroom detached property on the market for $300,000. You may then notice that there is one on the market for $350,000. Compare the two listings to see if you can notice any considerable differences between the two. It could be that the more expensive one has a much bigger garden, or that the rooms are double the size, or they may have recently had a brand new kitchen and bathroom installed, for example!

By understanding these differences, it enables you to get a handle on where your property fits in with this so you can determine a more accurate price.

Free tools online for valuations

There are also free tools online that will provide you with valuations. All you need to do is enter your postcode and some details about your property and you will be given a valuation. While these tools are quick and easy to use, you should not pin your hopes on the valuation.

These free valuations are not usually accurate, but they can give you a good starting point. As long as you recognize that there is a chance that they could overvalue your property and you do not use their valuations as the gospel, then you can use these tools to help you get a ballpark figure that you can then work with.

Forecasts for future property prices

Aside from this, it is a good idea to look at reputable real estate websites and to read reports from those in the industry. This can help you in terms of forecasts for future property prices.

Of course, no one can predict the future and so there are no guarantees. However, it is important to see what predictions have been made regarding the prices of properties in the areas you are debating investing in.

After all, when you invest in real estate, you are not just investing for today or next month; you are investing for years and years to come, and so thinking about the future is always important.

Find out whether the price of the properties have changed or not

In addition to the tips and suggestions that we have provided so far, we would recommend finding out whether the price of the properties that have been listed have changed or not. This can be very helpful in facilitating your research.

There are browser add-ons that enable you to see how many times a property’s price has been changed. Therefore, when you are looking at different property listings, you will be able to discover what price the property went on the market for initially, when the price changed, how often it changed, and by how much it changed. 

This is beneficial for two different reasons. Firstly, from the perspective of the seller, it helps you to see whether or not people have had to reduce their prices regularly and if this is something that you can expect.

It can be extremely beneficial from the buyer’s perspective. This is because you can use the information as a great bargaining tool. You will be able to see how many times the price has been reduced and this can give you great leeway when negotiating and trying to get the best possible price for you.

To conclude, it is imperative to have a thorough understanding of property valuations no matter whether you are buying or selling a home. By doing this, you can make sure you put your property on the market at the right price. If you are purchasing a home, this ensures that you are armed with the information that is needed to buy a property at a fair price. 

If you feel that a property is on the market at a high rate, you can go in with a lower offer and you will be in a position to justify it as well. This makes certain that you are not duped when it comes to mastering the real estate industry and buying a home.