Are Real Estate Agents the Only Way to Find Out your Property Value?
As a real estate professional, one question people always ask me is “How do I value my house or property?”
Property or house valuation is a service that is provided by real estate agents. But a number of home owners who are still on the fence with their property may not want to engage such services and just want to know for reference the value of their homes.
There are two ways a home owner can calculate their property value without the services of a real estate agent.
1. Prepare a CMA. A CMA is a Comparative Market Analysis which is used by real estate agents to assess property value. It is not a difficult process but it can be time consuming to prepare. For sure, a diligent home owner can conduct a credible CMA which only requires four steps.
a.
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Make a detailed list of the property’s features such as total square feet, number of bedrooms, type of roofing, the year it was built and the size of the garage. Also include a breakdown of the amenities such as availability of a fire place, swimming pool, landscaping and the quality of countertops.
b. Find properties within your neighborhood or nearby community that were sold in the last six months and which approximate the size of your property and similar in terms of the other details.
c. The price in which the comparable house was sold is the estimated sale price of your property. Cross check the available amenities and features of the comparable property with those of your own property and make adjustments to the sale price. For example, if the comparable property did not have a swimming people and yours does, add the value of the swimming pool to the estimated sale price.
d. Add the adjusted sale prices of all the comparable properties then divide by the quantity of comparable properties. The amount is the average of the adjusted prices of all the