If you are planning to make a new investment through real estate purchase, it is important to know the fair market value of any property. This will be helpful when you divide it for inheritance or divorce or when you plan to sell it in the future.
Get an Appraiser or Do-it-Yourself
For interested buyers, manorlakes.com.au suggests inspecting houses for sale thoroughly. As there are many properties in the market, you can get an appraiser to help you out. But, you can also research on the property’s value yourself. Follow these suggestions below:
• Try to get as much information on similar sales during the last three months. The homes should be similar in size, facilities and location. You can get these details from local real estate agents who can access this kind of information online.
• You can also gather information by talking to people in the neighbourhood. Alternatively, look for real estate advertisements online.
• Look at the prices of the homes that sold out in moderate time after being put up in the market. If they took too long or went very quickly, then the prices were either very high or very low.
• If you have six similar home prices, calculate the average selling price. This will give you the average sale price of the home you plan to buy.
• Tour the property you and see if the kitchen or bathrooms have been recently re-modelled. Then, add a few more thousands depending on their dimensions.
• Remember to factor in the type of garage, roofing, flooring, counter tops, the extent of fencing and landscaping before arriving at the value. The size of the backyard and the presence of a swimming pool will also make a difference.
The local tax assessor can also provide you the assessed value of similar properties. Remember that the real estate market can change quickly, so the comparison should be of recent sales only.