As a real estate agent, you will be required to provide an opinion on the value of a property. This is not always as simple as looking up comparable properties and using them for comparison. There are many variables that need to be considered when valuing a home. They include location, neighborhood intelligence, and household furniture, which can make it difficult to come up with an accurate estimate. These variables are not those you will have to consider in a real estate buyer checklist, thus it is important to know both of them. In this blog post, we will discuss these things so that you feel confident in your estimates when valuing a home.
1. Location of the property
When valuing a home the location of the property is one of the most important factors that determines its value. Properties located close to downtown areas, major highways or other attractions are more valuable than those at a distance from these features.
This does not necessarily mean that properties on busy streets will be worth more due to exposure; you also need to take into account how heavily trafficked it is and its proximity to noisy neighbors.
For example, if your home has easy access to public transportation but an interstate highway runs parallel nearby then it would likely have half as much desirability for potential buyers than another listing with no nearby interstate traffic noise and less congestion overall.
Location tips for a real estate agent
The market value of a property is determined by where it is. Hence, a real estate market analysis is crucial before you start selling the home.
The location factor has necessitated many real estate agents to have a location system to help potential clients know where the home is and at least have an idea of how much the house is worth.
2. Neighborhood comparables
Real estate agents use neighborhood comparables to help determine a home’s worth. This is one of the first things that an agent will do when valuing a home, especially if they are new to the area. Neighborhood comparables can be found on public records and by speaking with local real estate agents who know that specific market well.
Knowing what other homes in the area have sold for provides information about how much a home is worth as well as insight into which neighborhoods offer better opportunities – whether they’re more desirable or less expensive than others.
Before a client purchases a property, he will be interested to know about how the neighborhood looks like. Most home buyers will be interested to know whether there are schools and hospitals around as well as shopping centers.
As a real estate agent, it is important that you do neighborhood comparability so that you can determine the fair market price of properties you’ll be selling.
Proper market analysis
A real estate agent determines the market value of a home-based on the neighborhood. And thus, one must understand factors to consider in an analysis.
Comparative market analysis involves looking at different neighborhoods and picking the best among them. It will help you present the most convenient product to your clients.
In your market analysis, you should be keen to establish the proximity of the property to things like banks, transport facilities, offices, and more. These will definitely influence the value of a home.
3. Size and SQ footage
A buyer will want to know the size and square footage of a home. This is one way that they can judge how much space there is for their family, what type of layout exists in the house or apartment, and whether it’s up-to-date with modern amenities such as an updated kitchen or new flooring.
The current housing market might shift from year to year depending on factors like prices per sq ft may be higher in areas where houses are larger than normal while smaller homes tend to cost less because buyers would rather have more living areas instead of extra rooms just for resale purposes.
This means if you’re looking at two similar properties but one has newer features then this property could potentially be valued higher by your clients.
Details are crucial
During a comparative market analysis, real estate agents must consider every small feature that makes the difference. And there is a lot more than meets the eye in terms of size that a real estate agent should pay attention to when valuing a home.
In addition to updated features, the remodeling costs are a factor that can affect pricing so it’s important as an agent to get this information from your client before reaching out to potential buyers or sellers for more details on their renovation timeline and what changes they made on top of just new paint and flooring. All these will be affected by the size and sq footage of the house.
4. Updates in the home
An update means anything that is new in the home. If you are looking at two identical homes, one with updates and another without any changes made to it from when it was first built then this house will be worth more because of its updated features.
Value vs. feature
Buyers look at a home’s value in terms of trending features. It is much easier to sell your home therefore if it has personalized features.
Updates can come in many forms as well such as a newer roof, siding, or windows which all affect pricing for the value of your clients’ property.
Some agents even look for houses on excess lot space if there’s no room left but still want an update to their living area by adding onto the backside of the house they already own. This would also help increase their home’s sq footage so not only do they have an upgraded kitchen and bathroom now but there’s additional sq footage as well.
5. Nearby attractions
Nearby attractions can greatly influence the pricing of real estate properties. In your valuation exercise, you need to consider some of the attractions that are in the neighborhood as these can help you get the maximum value of the property you are selling.
Note that the real estate industry is segmented into various classes. While some buyers might be reluctant to pay a premium price for a home, you will still be able to get those buyers who appreciate the attractions and will be willing to pay any cost to live in that house.
Value and location
When valuing a home, you need to consider surrounding features as they play a critical role in determining a home’s value. Everything is included from the list price to the sales price following these features.
Home value is one factor that a realtor should not take lightly. It determines how much you will sell your home for.
Properties close to attractions such as parks, bird sanctuaries, waterfalls, and mountains are known to fetch very high sale prices for realtors. As such, it will always be nice to look for property listings that are located close to these attractions.
6. Interior of the property
The interior of the property is also given careful consideration when determining a fair market value. This includes considerations such as how large and spacious the house is, whether it has been updated with modern appliances if there are any fireplaces or other features that might make it attractive to buyers.
Among the interior factors that affect a home’s value is the number of bedrooms. And this has to come up when determining the list price.
Consider recently sold homes in the region, and what kind of features most buyers look at in a home value. It becomes much easier to negotiate a price that is closer to what the home is worth.
Valuing a home as a real estate agent can be tedious, especially if you don’t know what to look for. But whether you a home inspection expert in valuing a home or you do it yourself, the factors to consider are more or less the same. The factors discussed in this post are typically what all home valuers follow when valuing a home.