This is one of the first and most natural questions that come up to your mind when it is the time to sell or purchase, no matter whether you are a buyer or a seller. However, a house value estimate is not as an easy science as it can appear at first sight; it is true that there are now home value estimators available on-line; but they should be more regarded as a way to get a quick and dirty estimation of your property value- not a 100% reliable tool. In fact, there are some specific factors that unfortunately cannot be weighed by them but that can affect, even significantly, a house value estimation.
Property values are usually in large part determined on the average of the real estate prices of the area concerned. But a house can have some special features that can change the estimate that you obtain that way. For example, its position and orientation. Buying a house that gives its owner the possibility to enjoy a beautiful view or a stunning natural scenario could lead someone to pull out some extra money, especially if the seller is so cunning to create a sense of urgency and press on the purchaser by letting him know that there are other potential buyers around.
Another factor is the presence of inside or outside decorations or artifacts that adds value to the house (like frescos, mosaics, columns). A beautiful garden, some ancient parts, the presence or a porch and/or window gates, fountains, trees, small pounds, all these elements can influence the rating of a house or a mansion.
On the downside, a home located close to a noisy street or railway could be slightly depreciated because people usually prefer to live in a quiet environment.
Other common issues that can affect your house valuation is the presence of mortgages and liens of any sort. This is the reason why it is very important to make an accurate investigation on the legal situation of the property before the purchase; actually, it is the only way to avoid bad surprises after having spent an arm and a leg on buying a real estate that could be expropriated after some time by the creditors of the former owner. That’s why a good title search and title insurance are MUST HAVES! This is a normal part of real estate transactions.
Some specific circumstances of the owner can then be helpful to haggle over the price. For example, imagine the classic situation of an owner that is selling a real estate because in desperate need of cash. In such case, getting a small discount on the official price is pretty easy.
Last, don’t forget to check for hidden structural defects. Any home usually has some problems to fix, as perfection does not exist in this world. So, it is not a bad idea to have your future property inspected by a professional home inspector.
Timing is important, as prices change over time, especially prices of real estates. This depends mainly on two reasons, the deterioration of the buildings and the changes in the social situation of the area of location. New houses, or recently renovated homes, can cost a bit more than old houses, as in the latter case it is necessary to discount the cost of any necessary renovations. A posh area could get dumped after some years with subsequent breakdown of its real estate values, while a dumped areas could be boosted by a quick process of gentrification that makes it trendy and appealing. So, it is important to be forward-looking and try to figure out how the area where you are going to live will be in a decade.
In conclusion, home value estimation involves a tricky and long process. So, what to do to know how much a real estate is worth? Real estate specialists exist for this purpose. JB Property Solutions’ team has all the necessary skills and competence to help you in each step of the difficult process of pricing a house or a real estate, including any necessary investigations or inspections. For further information, please feel free to arrange an appointment with us when you wish by sending us a request through the page “contact”. Don’t forget to ask for a free copy of one of Barbara’s books.