Do you really know what the house you are about to purchase is worth? Chances are you may not even know what the house you’ve been living in for the past ten years is worth or the worth of that beautiful house you admire two blocks down. Understanding property value can not only save you from being ripped-off, it can also help you price your home accurately.
What if we asked you to guess the value of the properties on your block, how accurate would you be? Most buyers and sellers today are operating under the perception that they have a great understanding of property value in their area. In fact, a surprising 64.8% believe that they can give a slightly accurate estimation of the price for houses in the state while the remaining 16.3% believe they can come up with a spot on estimation.
Understanding the Market and Making Accurate Estimations
If you’re not sure what the house you are about to sell or buy is worth, below are a few guidelines that can help you to get a better understanding of property value.
The Location of the Property
Location plays a significant role in determining the value of a property. While you can always renovate a building, resize it and reinvent its aesthetic features, you will never be able to change the location. Examine the area carefully, taking into consideration the level of crime and natural hazards in the area as well as the condition of infrastructure and the availability of essential services.
The Size of the Property
The bigger the land and building size the higher the value of the property. Consider the occupancy capacity of the home. What are the sizes of the living room, bedrooms and bathrooms in the building? How much space is not a part of the domicile? Be sure to address these questions before you determine the value of the property.
Age and Condition of the Building
We all get weaker as we age and require more care, likewise so does real estate. A newly built building will attract higher values and a higher volume of premium prospective buyers than a building that was constructed 10 or 15 years ago. Older buildings are usually in poorer condition and will require frequent maintenance, but if the building has been recently renovated it can be sold at a higher price. Historical homes that were built prior to World War II can also attract a high price.
Eliminate the Guessing: Use Facts
Many areas in Arizona that were previously overlooked are becoming premier real estate locations. With the level of opportunities the market offers for upsizing, downsizing and investing, more and more people are gravitating towards the state.
When it comes to property value, eliminate the guess work. Look at the facts and keep a close watch on the prices of other properties in the area and the real estate demand for the location. If you decide to sell your home you will have a leg up on the competition.