How to Value Properties
When putting a value on a property, there are a few things to look for. The best way to value your property is to start with comparable sales in the area. When finding comparables for your property there are a few rules to keep in mind.
The first rule to finding comparable sales is to have at least 3. Of those three they should all have been sold within the past six months and no later than the past year. Most markets are constantly changing and what sold for $150,000 last year may be worth $170,000 this year. Only use active sales if there are no comparables in the area for the past year.
The next rule is to keep the comparable sales within a mile radius of the property. It really does matter what side of town your property is located.
Be sure to keep the comparable sales as similar to your property as possible. Stay within the same size and within the same amount of bedrooms and bathrooms give or take one. Also try and keep the amenities the same, do you have a pool or a basement that may not be comparable to other sales?
This brings us to the next part of valuing a property, the features. For every added feature that a home has, its value increases. Some of these features include; number of bedrooms and bathrooms, basement, pool, garage, square footage, condition, siding and architecture.
By knowing how to value your property you’ll be sure to be able to buy it and sell it for the right price. For the best rule of thumb stay cautious when purchasing and listing your property.