By Etaarifa Contributor
The value of your home is very important, especially when it is time to sell the property or if you are looking at get a home loan for investment. Most banks will have to inspect the property before they consider the amount of money to lend you. The value is determined by a number of factors including location, the size of the land, amenities and finishing.
To help house-hunters through this process, property portal Lamudi gives tips on how to go about placing value on your home:
Step 1: Gather information on comparable sales in your area.
You can get this information from agents, online real estate portals, newspaper classifieds and magazines. Look for recent sales in the area that are similar to your property to give you an idea of how much your home is worth. Look for houses that are very similar to yours in order to get the right value.
Step 2: Take out the prices that do not represent your market.
Look out for properties that took a long or short time to sell, and exclude them from your calculations. Properties which spend too long or too short time in the market could mean the owner priced it too high or too low. If there is a house close to the road or the highway and yours is not, remove that from the comparison list as well. Make sure the listings that you gather match your property.
Step 3: Do the calculations.
Once you have the final list of houses similar to yours, take the total sale prices and divide that by the number of listings so that you can get the average price of a house comparable to yours. To get the best results, get sale prices of at least four or five houses.
Step 4: Analyze the differences.
Finally, look for differences between your house and the final listings. For example, if the average price is Kshs. 20 million but you had spent Kshs. 100,000 to remodel the living room and the kitchen, then the value of your house could be higher.