Although there are many sources that would chart out the value of a property for you, they are not only expensive but are also conflicting in their views. For finding out the correct market value of your property, you should follow the following steps
1. Find Out The Local Sales Price And Compare
This is the most common method of valuing property and involves sales comparison of similar properties. While choosing the sample, it is best to ensure that the following points are taken care of
• Time Period – The said property has been sold in the past 6 months and not more than that.
• Distance – It is located within a distance of 1 km from your property.
• Comparable Characteristics – The chosen property should be similar to your property in terms of quality, number of rooms, car spaces and bathrooms, location and land size.
If you don’t take care of these important factors, then the final outcome of your valuation would not be accurate. The idea is to choose a property that is as similar to your property as possible and then assuming that you would get a similar deal. Real Estate Websites contain sections dedicated to ‘Sold Properties’ which could be helpful in this case.
2. Analyze Your Sample For Superior And Inferior Property
The 5-6 properties that you finalize will not be exactly similar to your dream property. Some of them would be slightly superior to it and some of them would be inferior. Be objective while making this assessment and take the help of a friend to help you choose.
3. Take Market Movements Into Account
Although you are looking at sales figures of only the past 6 months, in a market that is thriving, there are many fluctuations that can distort the picture. Take these fluctuations into account while you arrive at your final estimate.
4. Research Well Before Finalizing
Research is the key to getting your hands on the perfect property. You need to find out whether the property you are buying and similar properties around it are high up on the charts. Median House prices and auction clearance rates help in making your estimates as accurate as possible.
Beware of getting influenced by the agents. If you like a property and the estimates seem good to you, ask your agents for details regarding that particular property only. Also, the media tends to focus their spotlight on different properties at different times. The media should not be relied upon because they take certain other considerations into account which may or may not be related to your preferences.
If you’re in UK, a Chartered surveyor London can be hired for the most accurate advice about the right valuation of the concerned property.