residential property value
The value of a residential property essentially depends on the average selling price of similar properties in the area. In general, a bungalow, flat or two-bedroomed house on the second or third floor of a plush, up-market block with fine amenities has about the same value as an identical two-bedroomed house with basic kitchen facilities on the lower levels. The key is to look beyond the house’s cleanliness and outside appeal, though. A potential buyer wants to know how much his investment will appreciate.
Here are some factors that should be considered.
* Seasonal changes. As the warm months approach and summer approaches, home prices across most regions of the country tend to increase as houses become available. However, homes that are still under construction are often less costly than ready-to-move in properties. Therefore, buyers need to weigh the time to purchase in winter against the time to sell in summer.
* Commercial value. Not all residential property has comparable amenities to those available on a strip mall. If the house you’re interested in has an attractive lawn and tennis/softball fields for children, there’s no need to give its value a big jump. Likewise, if it has attractive exterior features such as a gazebo and a swimming pool, don’t expect to get as big of an appraisal as if the house was simply like any other on the street. Look at properties near shopping malls and colleges and see how many sellers have increased their asking price since they purchased the property.
* Income Approach. Many people who purchase residential property use an income approach to buying. Instead of concentrating on the property’s potential appreciation and increasing value, they focus only on current home values. This can be risky because it can lead buyers to pay too high of a price, which leads to over-valuing the property.
* Commercial Value. Unlike residential properties, commercial property does not change rapidly. It is usually built upon the existing structure of the site, so it doesn’t undergo major aesthetic changes. Consequently, many buyers are attracted to investing in commercial property because of the long term stability of buildings. If a single-family home were to suddenly go on sale, most sellers will try to quickly sell the property to recoup losses before others move in.
To find out what fair market value is for a certain type of property, a buyer should look at multiple real estate websites. Each website will list a different fair market value for residential property and will vary greatly from one site to another. These sites are great because they provide buyers with information regarding property values throughout the country. They also give potential homebuyers a range of prices for homes in various cities. In order to get an accurate estimate on what a home will sell for in your city, you should contact a realtor who specializes in real estate in your city.