Overview

Knowing the property market valuation is important for you to gauge the worth of your property in the real estate market. Whether you are buying, or selling a residential or commercial property, the valuation of the property is kingpin. In fact, it is a basic concept in the real estate market. It determines the price at which a property is sold in the market. In this transaction, both buyers and sellers are informed about the property. It often differs from the appraised or assessed value. It can be determined by keeping various factors into consideration.We at Your Property Doctor can help you in determining market valuation of your property.

Factors that Affect the Market Value of the Property

Property valuation factorsinclude the following:

• Property Type: The type of property holds great importance in the determination of market valuation of property. For instance,—the valuation of residential properties are different from the commercial ones. Residential properties are valued differently from commercial properties.  

• Location of the Property: The neighborhood, proximity to transportation, schools, amenities and other factors impact the market valuation of the property.  

• Condition: Before buying the property, check whether it needs repairs or renovation. Its current condition will determine the valuation of property.  

• Recent Sales: Try to know the sale prices of the properties similar to the property you are going to buy. It can give you an indication of the market value of the property.  

• Economic Factors: National and local economic conditions and current market trends also impact property values.  

• Layout and Size: The layout and size of the property influence the market value. The price of a property also depends on the basic amenities provided, such as bedrooms, bathrooms, etc.  

How to Calculate Property Value?

Once you have become familiar with the above-mentioned factors, the calculation of property valuation becomes easier for you. The following tips will be useful:

• Appraisal: Property appraisal methodsevaluate property’s value. Hire a licensed appraiser to know your property value. They consider various things, such as size, condition, location, and recent sales data.  

• Comparative Market Analysis: Comparative market analysis for propertyanalyzes the recent sales of similar properties in the same area. A real estate agent can help you in conducting this analysis to determine the market value of your property.  

• Cost Approach: The cost approach determines the value of property, based on the price to replace it with a similar property. It considers the obsolescence and depreciation.  

• Income Approach: This method estimates the value of commercial properties. It assesses the potential income of the property, which depends on capitalization rate, operating expenses and rental income.