Are you keen to know how your property is valued? Most homeowners don’t take much notice until they’re concerned about their home’s property tax bill, a recent appraisal for finance or a sale. Whatever grabs your interest, understanding more about how residential real estate is valued is beneficial. There is no ‘one size fits all’ to property valuations as there are multiple factors at play and in this article we provide some of the key factors that play an integral part in the assessment of determine residential property values.
Location of the Property
Where the property is located will influence it’s value. When it’s positioned in a highly desirable neighborhood or more specifically within a particular street within that neighborhood; your property will value up more than if it’s in another part of town. So when you hear the term: “Location, Location, Location” it means always buy in the best area you can afford. Understanding the pros and cons associated with your property’s location is essential to working out where to buy and how location impacts on a property’s value.
Property Style and Specification
Another critical valuation factor relates to the style of the property, the quality of the build, it’s finishes and amenities. Also the land parcel (grounds) are they of a similar or higher standard. An entry-level home with builders’ grade materials is sure to be value up less than a similar home of a higher spec i.e. higher-end finishes and fittings. There is however a risk of over captalising on materials etc. i.e. gold plated taps in the bathrooms won’t necessarily add value to your property. Once again location will determine whether it’s wise to invest in top of the range fixtures and fittings or not. The same applies to how much work you put into your property’s grounds. A property that’s well landscaped with good indoor, outdoor flow will value up more than a similar property that’s lacking in good use of the property’s section.
The Size of the Property
Is the property well proportioned with enough bedrooms and bathrooms for it’s size? When valuing a residential property appraisers and real estate agents consider all of the above. It’s fine to squeeze in more bedrooms however quality of living plays an important part in how the property values up. Remember it all comes back to ‘desirability’ – and what someone else would likely pay for the home.
We have touched on this topic earlier and that’s comparing apples with apples so to speak. It is not reasonable for a property that is very similar to other properties in the are to value up substantially more. Researching comparable properties is a smart way to estimate value as accurately as possible.
If you are concerned that your property has not been valued fairly by the taxing authority or by an appraiser, you understandably have a substantial amount of money at stake. You may have a legitimate reason for your valuation estimate, but you may not know how to proceed. Lawyers like Prime Lawyers can help you to learn more about your rights and may assist you in structuring a sound case in your favor.