For some property owners, this is the million-dollar question. Naturally, we all hope to sell the property for higher than the purchase price, but if you are thinking of placing your property on the market, how can you calculate how much it is worth today?
Take time to look in detail
There are a few different methods you can use to answer this question. The best place to start is with some detective work to find out if any other properties are for sale in your building or close by. This will give you a good benchmark for the value of yours.
Take time to look in detail of how this property compares to yours and what justifies its prices. Does it have a brand new contemporary kitchen that will undoubtedly increase its value, a much better city view or an extra bathroom?
Study the photos and floor plan to identify any differences to ascertain whether you think your property is worth more or less. Remember not to be biased to your property and just look at the hard facts.
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Real estate agent
Next, speak to a real estate agent. They have their finger on the property market pulse and will know exactly what has sold and for how much. Concrete comparable evidence of actual sold properties is vital as some properties are marketed at a price
to reflect the buyer’s personal situation.
Going in lower if they need a quick sale to free up capital or higher if they have all the time in the world to sell. A good real estate agent will also offer to come and have a look to get a feel for the property to provide a market appraisal.
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Last by not least one quick calculation is working out the price on a square metre basis. An agent or even the building management team should know the sales that are being achieved on a per square metre basis. A quick bit of maths with the floor size of your property will help answer this one.
Better still, combine all these three methods and compare each to come to the most accurate figure.
But remember property is worth what someone will pay for it and the current state of the market will easily influence this. Therefore look only at recent sales as values can change month by month depending on supply and demand.
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