Whether one plans to buy or sell a home, the price of the house is the deal maker for both the buyer and the seller. In both cases, one needs to know what price is the best deal for a given home of a particular condition. It might be possible that two houses in the same locality could be priced differently depending on various other factors. Estimating the property price is difficult therefore, unless you consider factors that impact the price of that property. Here is a quick list of factors that when considered can guide you to estimate the price or market value of a property.
Calculate the square-foot price of the home – In most instances, property price is based on its square-foot price in the market. However, to further decide what should be the square foot price of the property you need to figure out the following.
- Does that house need repairing to bring it up to current or modern standards?
· What is the condition of the property – Good or Excellent?
· What is the age of the property and appliances in possession?
· What amenities are available inside and outside of that property?
· What is the paint condition, and so on?
These and similar factors will help you to estimate the square-foot price of the property.
Investigate within your neighbors – This is the most important source for finding out what best stands a price of your property in that locality. You may look into the listing price of houses on sale; however, those values might not be valid. It is rather more important and reliable to find out the sale price of a property that has been sold in the last 3 to 6 months. If you have a figure in your mind already based on your initial investigation, you can now adjust your property price based on the resent sale value you identify.
Understand the growth factors in the locality – The pricing of a home can changes drastically because of the growth prospects in the neighboring areas. Therefore, you need to understand how well the locality is growing. See if there are more market complexes coming up in nearby areas. Get an idea if high-rated schools are there nearby which will likely pull families to stay in that locality. Check if there are commercial buildings that are hiring large number of employees. Figure out the popularity of the medical facilities in and around. All of these investigations will help you to estimate a fair price for your property.
Compute the price based on calculable facts and data – When you own a home, it is likely that you would love your property even when selling. And just because you love your home, its price does not increase beyond a standard market price. Therefore based on the data you have found through various investigations, compute the price. Take the initial square-foot value, add or subtract based on the pricing trend that you found out from a recently sold home in that locality, adjust the price based on other factors – amenities, facilities, employment, population, and so on – and come out with an educated price for your property.