The first thing that you must do is to determine the value of the property if you want to sell it. You know that you are only going to sell it in order to make profit before buying it. Buyers sometimes take chances and try to buy the property based on its future value. These are the some of factors that you have to consider for determining property value.
Proximity and location: The appraiser will start out with the basic criteria while looking for the comparable sales. Proximity and location are the two items that they always look for. Proximity is the actually the distance of the comparable homes to your home. Most of the time the appraiser will find out the comparable sales with half the mile from your home if your home is located in the city and a mile if you are located in the suburbs. If your home is located in the rural setting, the comparable sales at around 5 miles are desired. If you have to travel for 30 to 40 miles because of the lack of comparable sales, then the appraiser can go outside the proximity distances.
Location must be more specific. You must be specific of the location of your home. The factors that the appraiser will consider is the location of your home next to the water towers, transmission towers, factories, gun clubs, and commercial operations.
Square footage: The appraiser will look for homes which have an above ground square footage of gross living area around 30% of your home. For instance, if your home offers 1000 square feet on the main level, the appraiser will be looking for homes that offer 1000 to 1200 square feet. Many a times, the square footage will be over by 30%, but it's just a guide.
The Age of Home: The appraiser will look for a comparable sales that will offer homes with the age of ten years of difference. If your home is built in 1990's then the appraiser will try to find the comparable sales that are built within 5 years of either side of the age of your home. Lot size: The lot size is important and really makes a huge difference in the property value. The appraiser will attempt in order to bracket the lot size. The appraiser will locate one sale with a lot bigger and the one lot that's smaller than your home. The square footage of your home will be important to the appraiser and the bank than the lot size.
Outbuilding and garage: Many times the outbuildings and the garages make a significant difference for the property value. The appraiser will locate the homes with the outbuilding count and the similar garage to your home. If they are unable to locate a home with the outbuilding or garage similar to your home, then they will go outside the market in order to find a home with the similar garage. They can use few homes in the immediate area so that they are able to compare homes in and outside the development.
Factors that Determine Home Value