Expert Real Estate Valuation: Using Comparable Properties, Market Trends, and More
Whether you are building a new home or want to value your current one, we’re here to help. Our team has years of experience with real estate valuation, helping us determine an accurate estimated market value for your property.
We Include a Sales Comparison Approach
One of the biggest factors in our real estate valuation methods is the sales comparison approach. Comparable properties are one of the most accurate indicators of your property’s value.
That being said, we rely on more than just a sales comparison approach, as it is far from the only thing that influences your real estate property valuation.
What Affects Your Real Estate Appraisal
Over the years, we’ve determined the best combination of real estate valuation methods, which include various factors. These can help with residential real estate, income-producing properties, and commercial real estate valuation alike.
As mentioned, a sales comparison approach is one factor in our real estate valuation. We look at properties in the area that are a similar size and in similar condition. For the most accurate results, we look at real estate that is as similar as possible to your property.
Condition and Age of the Home
As mentioned, when comparing properties, we look at real estate that is in similar condition. If you need new commercial real estate valuation, we will look at the fair market value of other new commercial real estate. If you have a home that is 20 years old, we look at properties of a similar age.
The condition of the property goes hand in hand with its age. Older properties aren’t always in worse condition. We will look at factors such as the foundation condition, upgrades or renovations, the age of the roof, and more.
The location also plays a crucial role in property valuation. Depending on the area, even moving a few blocks can change the value of a property.
In the case of residential real estate, schools will be important. In the case of commercial real estate, they may not matter as much, depending on your target demographic. But factors such as neighborhood safety and transportation will always play a role.
Size of the Property and Home
The size of the property and building also both play an important role in property valuation. Larger homes tend to be more expensive, as do larger lots. That being said, the other factors play a significant role. So, a larger property in an inconvenient location or in disrepair may be worth less than one with a smaller square foot measurement in a better area or that is new.
The Housing Market
The real estate market also plays a significant role in our property valuation. Our team can tell when the market favors buyers or sellers and helps you evaluate your home properly. We can even use this information to help you time when to sell your real estate investment.
Current interest rates can also affect the results of our valuation method. That is because interest rates tend to influence demand. Higher interest rates can reduce demand for homes, which could drop prices. However, the market and interest rates don’t always go hand in hand, as other factors also play a role in demand.
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How to Use This Knowledge
Once you get a fair market value of your property, there are several things you can do with this information.
See If You Want to Sell Your Real Estate Property
The most common use of the valuation is to decide if you want to sell your residential or commercial property. Many people take a cost approach and will sell if it is worth a certain amount more than their original purchase price.
Compare It to Your Net Operating Income
Real estate investors can use the information to decide whether the property is a good approach. For investors, taking a cost approach or income capitalization approach will frequently involve comparing potential or current rental income to price. You may also conduct more detailed evaluations that consider your operating expenses and gross annual income.
Keep It in Mind When Applying for Loans
Those looking for a commercial real estate investment may also keep the valuation in mind when applying for business loans. Or a homeowner can keep their home’s value in mind when applying for a personal loan.
Let Eric Eby Provide a Property Valuation
With our assistance, you don’t have to worry about determining your real estate value. Our expertise and well-tested methods let us use comparative market analysis and other factors to estimate your property value.
Take advantage of this before selling the property in question. Or count on our expertise to help you decide whether to buy a property. Whether you are buying or selling real estate, our experienced team is here to help. Contact us to value your property and decide on your next steps.