This time we will learn a simple way of appraising a house, for this we will use 5 essential elements to perform this task. In addition to being able to understand in a deeper way how to calculate the value house we intend to sell.
The 5 main elements of a home appraisal:
- Land area: This is the total square footage of the land and does not take into account the building.
- Building area: Consider the architectural roof area of your home.
- Location of the house: This is the area where you live in an urban or rural area.
- The age of the house: This is a very important factor because it takes into account the quality of the house and its equipment over time.
- Regional or national economic news.
This single factor alone can change the valuation of a home, in countries with economic problems such as recessions or political issues, real estate tends to depreciate in value, however, in the best economic conditions, the same housing can raise prices substantially, let’s see an example:
In New York, due to the increased demand for apartments, houses and land, mainly in the A and B socioeconomic sectors, the economic boom has led to an average increase of 30% to more than 100% in housing and land in some sectors.
Now we will move on to see how people usually rate their homes, which, together with the five elements we have seen, will give us the answers we are looking for.
The most common home valuation methods:
The vast majority of homeowners who need to appraise their properties usually use traditional comparison methods, which give us a fairly general idea of the price of an area.
Remember, this is only an approximation of your home’s valuation, and you should always consider the five factors we discussed above to get a better value.
Another way to know the price of a home:
The following method is for reference only, you can use it to understand the cost of your home, run the following formula:
Multiply the rental value of your home by 320.
In this way, if you rent your property for $1,000 per month, if we multiply it by 320, we have as a reference $320,000.
How to increase the value of your house:
If we are valuing a house so that we can sell it more easily and earn thousands of euros or more, then I suggest you ask yourself and answer a simple question:
Does my house look like new?
If not, you should try to make it happen, a coat of paint is just the beginning of the reform, it will allow you to replace some ceramic, broken glass, electrical outlets, and touch up the garden, even if you think it is convenient. should change all the doors, go do it! The benefits you will get later on are worth it.
Believe it or not, the money and time you invest in these renovations will have a significant impact, which will encourage people interested in buying your home to pay what you ask.
Final conclusion
Remember to keep in mind the 5 factors we have laid out for you when valuing a home, if you want to encourage buyers to buy it at the price you are asking, you know the questions you have to answer, and with this you and future homeowners be happy.
