If you are planning to sell your house, it is imperative to know how much you can you can sell it for. This amount is what we call the resale value or the market value of your house. If you do not know what the proper resale value of your house is, you may end up selling it for less than you should.
However, calculating the resale value is not a simple procedure – you have to take into account multiple factors such as:
1. External Elements
These can include the condition of the walls and the roof on the outside, the curb appeal or attractiveness when it is viewed from outside, pavement, and sewage system.
2. Internal Elements
The size of your house and the number of rooms it has, especially the number of bedrooms, will ultimately be the biggest factor in determining its value. Apart from this, the condition of the electronic appliances and whether the house is furnished or not in the first place also play a role in this calculation.
The safety and peacefulness of the neighbourhood your house is in will have a great impact on its resale value. Most people will not spend a lot of money to live in an unsafe or dirty neighbourhood, or a neighbourhood that is very far away from any means of public transport.
4. Supply and Demand
Ultimately, the number of buyers in your area as compared to the number of homes on sale will determine the dynamic value of your home. This is the one factor that may be completely out of your control.
How do I Calculate the Market Value?
The simplest method for evaluating the resale price of your house is what we call the “sales comparison” approach. List out the following features of your property:
1. Lot size
3. Built-up area
5. Number of bedrooms
6. Overall condition
Once you have done this, you need to look at comparable properties in your area that are currently on sale or have been sold in the last 3-6 months. These properties should share at least some, if not all, of the features of your own house.
After you have looked at a few such properties, average out their sale prices and give or take a few rupees according to any differences there might be in your property and the other properties. This will give you a benchmark price, which will be a good indicator of your house’s resale value.
With Tata Capital, though, housing finance becomes easy. If you apply for a Tata Capital home loan, you will not have to worry about any extra penny you will have to pay to buy a new house after you sell your old one. Tata Capital’s home loans feature the most flexible home loan eligibility criteria along with low home loan interest rates starting at 9.25%. Apply for a home loan with Tata Capital today.