When you are planning to sell your house, its true market value becomes your top concern. As a homeowner, you have put a lot of effort into the property and want great returns on the investment. But determining your property’s worth can be tricky. Even if you have a rough idea of the expected rates, several factors can determine the value of house.
Wondering how much your property is worth? Consider these factors for a better valuation.
Location is a major factor that goes into ascertaining the value of your property. Houses situated in or near cities are valued higher than those away from the population. When looking for a house, buyers are most attracted to areas that have markets, utilities, good schools, hospitals, restaurants, and so on. Additionally, if your house is well connected to public transportation, tourist destinations, offices, or any major highway, it will be carry a higher price tag.
Additional Read: 5 Factors Affecting Value of Residential Property
Comparables refer to the sale price of the houses in your neighbourhood that have similar characteristics to yours and hence can be compared. A market analysis of the most recent sales can help you determine the right market value of home. You can use an experienced realtor to help you assess nearby comparables and use the information to price your home.
Size and condition of the house
The age, condition, and features of your house have a huge impact on the market value of your property. Typically, new houses with proper renovations and up-to-date features are appraised at a higher rate. Additionally, the overall size of your house and the available living space is important to factor. Bigger homes with more bedrooms, bathrooms, and larger living areas usually demand a higher price.
Likewise, upgrades and updates like a modern kitchen or the latest fittings and lighting in the house also help in determining your property’s worth. However, these improvements should be in line with the market demand to realise good returns on your investment.
Additional Read: How Much Property Value is Covered by Home Loan?
Even if your house is in the best condition and is located in a safe neighbourhood, the supply and demand of properties can affect the valuation. If there is a high demand for homes in your locality but not enough supply, your house market value can go up, and vice versa.
Similarly, since a house is a huge investment and an asset, any changes happening in the economy are also reflected in the property market. For instance, if there is a decrease in purchasing power, people might not be able to afford a home. So, it is essential to keep up with these changes to arrive at the accurate value of your house.
Over to you
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