How To Assess Property Prices

1. How To Assess Property Prices | 5 Factors Purchasing a property is a significant decision for the majority of people. Therefore, in order to justify your investment, you need to be able to assess the accurate value of your potential property. You should avoid extremely expensive properties and identify one that fits your budget and meets your requirements. In this post, we will teach you how to assess the price of your property, so you don’t end up overpaying. We have developed a list of factors that constitutes the accurate value. Here you go: #1: Location We cannot stress this enough; location is the paramount condition for price fluxes. A property located in a prime area could be worth millions of dollars, while the same property in an urban area could cost merely a couple hundred thousand dollars. The difference? The site with the most amenities, traffic, and demand will cost more. Suppose you desire an area where everything is close by, whether hospitals, grocery stores, gyms, churches, etc., you might have to pay higher because you are not the only one with similar demands. Conversely, if your desired property is in a faraway land with peace and nature, it might not break the bank. Regardless of the property you’re purchasing, evaluate the location first, whether it meets your requirement, and if it does, proceed to the next factor. #2: Infrastructure

2. Every property is built differently; hundreds of types of materials for walls, floors, furniture, closets, etc., ranging from average to top-notch quality. Marbles are worth more than limestones, and so forth. Furthermore, the bigger the property, the more it will cost. Look at the number of rooms it offers, the carpet area, the design, the paint job, whether furnished or unfurnished, etc. All these amenities add up. Scrutinize the quality of materials used for the infrastructure indoors and outdoors, and you will have a general idea about the total construction cost. #3: Availability and Demand Needless to say, if a property is at a prime location and has the best infrastructure, there will proportionally be more demand for it. Hence, the owner can charge an extravagant price, provided enough buyers agree to pay. The more people lining up to purchase a property, the more an owner can charge, despite the market value. #4: Market Value Computing the market value of a property is essential because it tells you the actual face value you could sell it for later on. Depending on your situation, you might pay more or less; however, estimating the market value should be your first priority. There are many ways to evaluate the market value, one of the easiest ways is to find a few similar properties in the same neighborhood. By similar, we mean the area per square foot and infrastructure. For instance, if you are interested in a duplex, don’t compare it with a triplex. Find another previously sold duplex in the location, usually within the last 90 days. The exact price could also be assessed for your property, with a few additions or subtractions based on the amenities and quality of materials used. If the property you like has more amenities, it will cost more than the other with fewer amenities. It is best to find 3-4 properties that are identical in location, age, and infrastructure. Once you do, after adjusting the amenities for your property, you now have a rough estimation of what your property should cost. Simply find the mean average value of all the found properties.

3. To put it simply, add the price of all three properties, including yours, and divide it by three. You now have an average property price; that could be your property’s market value. #5: External Appeal If your property is prettier than every other property in the location, it will be slightly expensive. The external appeal is what most people judge a property with on their first visit. You will not invest in a property that looks ugly from the outside; hence, it is now mandatory for the property to look good; otherwise, it doesn’t sell. There are a few additional aspects that constitute a property price; however, the five listed above are the major deciding factors. Finding the worth of each property will cost you a lot of money, time, and resources; hence, we built you a simple solution—Shadow Properties App. It is a one-stop solution for your real estate investments. After enrolling, you see a massive record of on-market properties listed with their last sale value and their current selling price. You can add the desired property to your list, communicate with the owner, and close the deal. For more information, visit our website: https://shadow.properties/