Pricing your property may be a tricky process. However, there is a general guide for home sellers who wish to learn, at the very least, the basics of the process. Ultimately, if you are going to sell your property, you will most likely hire a real estate agent, who will be able to aid you in this.
Look at similar homes
As with anything to do in the property, whether you are a buyer or a seller, you will need to do your homework. You should find out what similar homes are going for in your neighbourhood, which means that you should plow through property listings online and in the newspapers to get a good, general idea.
You should look at both homes which are currently listed and which have already been sold. Although homes which have not yet been sold leave the question hanging, of whether they are worth the price their sellers are asking for, it is always useful to know what the active competition is like.
Use the strategy of square foot pricing
In square foot pricing, you will need to measure the interior area of your property. To do this, you may have to make an estimate for the size of hallways and similar spaces but for rooms, this can be relatively straightforward. For example, if a room is 10 feet by 10 feet, then the area of the room is 100 square feet.
Once you have calculated the total area of your property, you need to take the cost of the property and divide it by the area to get the price per square foot. This is one way in which home buyers compare property prices – by comparing the price per square foot of one property to another, buyers can see for themselves which is the more expensive property.
This strategy is also useful in the event that you are unable to find a similar property to compare with, perhaps because you live in a neighbourhood where the properties differ in architecture, size, and style.
In this case, you should pick a number of homes, preferably about five properties, which are as similar to yours as possible, and add up the area of each home before dividing it by the number of homes to get the average square feet.
Once you have done that, do the same for the prices of the homes you have chosen in order to get the average price. Then take the average price and divide it by the average square feet to get the average price per square foot. To estimate the price of your property, take the average price per square foot and multiply it by the area of your property.
You should note that this is only an estimate, however. If you want to be as accurate as possible, you should get an appraiser to look at your property.
Consider the amenities available
You should factor in the amenities in your neighbourhood. Close proximity to MRT, BTS and BRT stations and bus interchanges is always an advantage, as is the presence of grocery shops, shopping malls and other facilities such as clinics and sports complexes.
It may be difficult to gain an estimate simply from looking at the amenities available, however, the general consensus is that the more convenience you enjoy while staying in your property, the more value it has.
Get a comparative market analysis
If you need reassurance, approach a real estate agent and request for comparative market analysis sometimes referred to as a CMA. CMAs are essentially reports containing data on listings which are active, pending, sold, withdrawn or expired.
Get your property appraised
If you still require additional reassurance, you may hire an appraiser. The cost of hiring an appraiser, however, depends on the size and unique features of your property.
Appraisers will review your property, the market and other properties which they deem comparable to yours, after which, they will provide you with an appraisal, which can be deduced as a professional estimation of your property’s market value.
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