In other words, it is a way to measure how effectively you use your money. This is the method to calculate the return yield if you decide to invest in property. For example, if you want to buy a plot of land, just go around and compare the price to that of land in the nearby area and analyse the differences. It is the simplest and easiest way to evaluate property. Mr Sorn Seap, founder and CEO of Key Real Estate Co., Ltd., a real estate analyst, and former vice-president of the Cambodian Valuers and Estate Agents Association (CVEA) has exclusively shared with Construction & Property Magazine readers the five methods of how to basically evaluate property. However, property evaluation is not as complicated as you might think, and in fact, it is quite simple. This is because they know how to evaluate property very well. Finally, when you’re ready, you can apply for a home loan.You might often wonder how others always make money from real estate investment or wonder why they always choose the right property to invest in. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. If you’re looking to purchase a property, ooba Home Loans, South Africa’s leading home loan comparison service, offers a range of tools that can make the home buying process easier. The current buyer’s market provides the perfect opportunity to secure homes at below market value. You don’t want your offer to be too far below market value, but an estate agent can advise you on your chances of securing a bargain deal. The negotiation gameįor home buyers, the market value makes a useful guideline for negotiating your offer to purchase. As well as providing an estimated property value, they can advise property sellers on whether they should attempt to sell above or below market value, and by what margin. Estate agents can provide a CMA (Comparative Market Analysis) which will take into account market forces along with the value and selling price of other properties in the area.Įstate agents have an understanding of the property market, and the factors that play a role in property valuation. It’s always best to go to a professional. This includes factors such as the age of the home, the state of the garden (if one exists), and aesthetic elements such as flooring, furnishings, kitchen design, and so on. However, that won’t last forever, as the South African Reserve Bank may be pondering interest rate hikes in late 2022. South Africa is currently experiencing a buyers’ market, due to the record low interest rates. Different factors can play a role.įor example, whether we’re in a sellers’ market or a buyers’ market. If you’re the seller, you should not assume that the property price will end up being the same as your perceived selling value. The state of the marketĭetermining the market value of the home is just one step in the negotiation. Location is the biggest factor in determining property prices, with the views, nearby attractions and the relative safety of the area all playing a role.Įxperts will look at the price at which other similar-sized homes in the neighbourhood have been sold for, (as well as the price at which the property in question was last sold for). The primary factors that professionals use to value a home include: 1. There is a process involved, and being knowledgeable of it means you don’t have to “guess” the value of the property based on superficial elements The factors that play a role in property valuation As such, it helps to know what factors play a role in property valuation. Whether you are looking to buy or sell, knowing the value of a property is an important step in the negotiation process. Market forces play a substantial role in determining property value and the final selling price for example, a buyers’ market may force you to sell a property at below the estimated market value.The advice of estate agents is invaluable in determining a property’s estimated market value, and what its price tag should be.The main factors in determining the value of a property are the selling price of other properties in the area, and the price at which the property in question was previously sold for.
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