Whether you’re thinking of selling a real estate unit or buying it, determining the fair value of it is a great challenge. You have to calculate it critically, and come to a fair value which the market will absorb and also will not result in you trading the property at a price which results in loss. Trading a home one of the biggest financial decisions you will make in your lifetime (for most people). Once you make a mistake, you will bear the loss for the rest of your life. Therefore, determining the fair home value is very important (either as a buyer or a seller). Here are the ways to determine it;
- Use the Internet:
Internet is one of the quickest ways to find out accurate home value. Many dealers, builders, or sellers opt for this option. One can look at the pictures of the home (both exterior and interior), with location, home size, number of rooms etc. Those who are willing to buy, will negotiate with you about the cost. After discussing with three to four customers, you will come to know about the estimated cost of your home is.
- Use Property portals:
In Pakistan, some real estate sites also publish the information of recently sold home on their websites. Using online search is a good first step to take before you make any phone calls or visit any offices. That way, you can get an idea of what information is available without a lot of inconvenience for yourself. These online portals play a role of mediator among buyers and sellers, and give information about property prices. For instance,
- Zameen.com: Zameen.com is the first and largest property portal in Pakistan and is among the top five property portals in the world. Sellers upload pictures of homes, shops, offices, commercial buildings etc. with their prices. Almost every kind of building is available on their site. By reviewing available properties on their site and making a cost analysis, you will easily get an idea about real estate market. You can calculate the value of your home by using that data. That will give you a fair enough idea.
- Garaana.com: Pakistan’s property portal, where you buy, rent and sell houses, plots, shops, flats in Islamabad, Rawalpindi, Lahore and other cities. They provide you a place where you can sit back relax and market your projects and listings.
- Comparative market analysis:
Determination of home value is very critical. When you’re ready to dive deeper into your home value, you can ask a local real estate agent for a comparative market analysis. It will provide an estimate of value, typically for listing purposes. Local real estate agents may provide a CMA for little or no cost. You must be careful, when they come to know you are selling/buying, they will try to involve (for their profit).
- Hire a realtor:
To put things in the right way, right person is required. No matter how much expert/clever you are, a realtor will always make a better deal than you (when it comes to determine property value). They have their own techniques for determining a home’s value, and it can be very helpful. Realtors typically look for recently sold homes that are similar in:
- Number of bedrooms/bathrooms
- Style and view
- Home type
- Recent sales price
According to that, they will easily tell you how much worth your home has.
- Contact an insurance company:
Mostly, insurance companies keep data on real estate sales in a given area. Some of them will provide you that data for free, hoping you’ll buy insurance from them. The property profile will contain a list of comparable properties to your own, and the specific aspects of these properties. By collecting this data, you can do a comparative analysis, and determine your home’s value. Remember that, not all companies will do this for free, but you might still be able to obtain a property profile for a fee.