5 steps to estimate the value of your property

It might be tempting to look around at recent neighbor sales to assess your property’s value. And while this is essential information to add to the puzzle, that’s not all, and you shouldn’t stop there.

PRD recently outlined five key aspects that you should assess when trying to estimate the market value of your home.

1. Location

It might seem like the obvious thing, but PRD reviewers say many people don’t fully understand what “location” means as a selling point.

It encompasses the surrounding community, amenities, proximity to necessities, convenience of your property and finally the geography of the area.

“Understanding how far away the property is from public transport, schools, shopping malls and athletic fields can significantly affect the prospects of some buyers,” PRD experts noted.

But beyond the appealing qualities of your neighborhood, sellers should also be aware that much closer to home, nearby properties will play a role.

“From the suburbs to the streets, your neighbors affect the perception of your property. You can keep your property well maintained, alas, if the rest of the street is not maintained you may need to adjust your numbers accordingly, ”said PRD.

2. Age

“A good property is like a good wine,” said PRD real estate professionals.

An older property with strong bones and in good condition will always be an attractive offer. But note that the condition is not just the condition in which you keep your home; these are the materials used to create the building.

That being said, a brand new home will naturally grab attention as it embraces the current design era.

But when it comes to new construction, the same can be said for the fundamentals of the house: the quality of its construction.

Clear repairs needed on a property that is only a few years old will ring the alarm bells for many.

PRD updated the old adage to advise, “Sticks and stones can damage your walls, but a strong foundation will retain its value.” “

3. A house is not a house

The layout of your property and its livability play an extremely important role in whether people can imagine themselves residing there when they walk through the door – or whether investors can see its potential to invite potential tenants.

“Layout and features are one aspect of the property that every buyer will consider. The bedroom, bathroom and car space concepts are a good start to your evaluation, ”noted PRD.

Comparing your property to a recently sold home with the same assets will help you get an accurate market value.

4. Look around you

While you can’t base everything on how much your neighbors have earned from them, this is an important metric in determining the value of your property.

“Compare with properties like yours first. This forms your baseline. A baseline allows for a realistic starting point, ”PRD advised.

“Then take your baseline and use the location, layout, age, condition, and additional features to create a modified and more competent review.”

They insist on taking a realistic approach when comparing your property to others and keeping in mind that prices are ultimately influenced by a multitude of factors, including the personal preferences of the buyer of the day.

“You have to understand that housing prices are subjective, within reason. A family may prefer one home over another because there is a desired feature or environment for the property,PRD noted.

5. Run the numbers

“For a more precise benchmark to achieve the precise value of your property, increase the number of properties you compare and run them through an average price per square meter process,” recommended PRD.

To do this, take the selling price of comparative properties and divide each by the square meter provided. Next, find the average, then multiply that average by the square meter of your property.

This process allows you to create a baseline that avoids human error by taking a mathematical approach.

5 steps to estimate the value of your property


Last updated: December 16, 2021

Posted: December 17, 2021