Knowing how much a property is worth is not an easy task. If you are thinking of putting your house up for sale, you should calculate, either by yourself or by third parties, how much money you can get. In this post we are going to try to teach you what are the keys that you have to think about to answer the question: How to know how much my house is worth?
First of all, you have to learn to differentiate between the appraisal price, the market price and the real money that they are going to give you for your house.
- Appraisal price: This value is calculated by an expert based on a series of calculations that are made by analyzing the advantages and disadvantages of the home.
- Market price: This value is less exact, since it shows the normal price of homes in a given area, but it varies widely based on supply and demand.
- Real price: You have to be realistic and understand that the value of a house depends on many factors, including the interests of the seller himself and interested buyers.
In short, it is very difficult to know the exact amount for which you can sell a home, but you can get very close to it. Do you want to know how? We tell you.
Factors to take into account
1. State of the home.
Unsurprisingly, a newly built home or a home that is only a few years old will be more expensive for buyers. The reason? Mainly, due to the installations of electricity, water, structure, electrical appliances, etc., since if they are relatively new they are less likely to break down.
Also, if the house is ready for new tenants to move in as soon as possible, its price will be higher. Few people are looking for houses to reform, since this entails an extra investment and, on some occasions, headaches.
2. Size of the house.
Here both the square meters of the house and the location in which it is located come into play. If the house is located in a good area and has all the services nearby (supermarkets, schools, public transport, etc.) its value will be much higher.
For example, if we had two exactly the same houses with the same number of square meters, but one in the center of the city and the other on the outskirts, the value of the first would be much higher than that of the second. Here comes into play what potential buyers value the location of the house against the price.
3. Usable space.
This term refers to the different spaces that a house has. Not all rooms have the same value when calculating the price of a house. As a general rule, the most valued rooms are the bathrooms, kitchens and main rooms. Secondary bedrooms (children, visitors, etc.) or living rooms are not as valuable.
On the other hand, the garage may or may not be considered a habitable area, but if it is not, it would be considered a nearby service that also adds value to the home.
How do I calculate how much my house is worth?
There are different ways to do it, but the most common are the following:
- Do market research. There are many pages on the internet that can give you information about the current price of the real estate market according to the city and even the neighborhood in which you are interested. A disadvantage of this option is its inaccuracy, since as we have mentioned above, the market price is constantly changing.
- Compare with other homes. You can look at other houses with characteristics similar to yours to guess more or less the price you can ask for it.
- Contact an appraiser. This option is the most recommended, since it will give you the most exact figure and has great legal validity. In addition, you will save a lot of time doing research on your own.
If you want to know more…
We hope that this post has helped you to learn a little more about the value of a home and that you are now able to answer the question: How to know how much my house is worth? If you need help putting your home up for sale, do not hesitate to contact us through the web or by calling us and if you want to know more about the real estate world, be sure to read the rest of our blog posts.