REAL ESTATE ASSESSMENT METHODS

Real estate is a type of property that has a very strong fluctuation in value as well as a great impact on other socio-economic aspects. Therefore, to accurately value this type of property, you need to have basic knowledge of valuation as well as understand the valuation methods commonly used for real estate today.

Valuation through real estate location

In the valuation methods commonly used for real estate, the first factor to consider is the location of the property. More specifically, you need to determine which area your house is located in, which district, large or small frontage, is located in a secondary or main alley. Because properties with frontage located on the street often have high business value, the selling price will be much higher than properties in the alley.

Valuation through the local land price list

After you have determined the location of your real estate, the second commonly used valuation method for real estate that you need to consult immediately is the latest land price list issued by the provincial or city agency. onion. In addition, you also need to refer to the market housing price through information from real estate companies, reputable websites, banks... The value of frontage land on an actual street will be higher than 3 -4 times the land unit price currently regulated by the State. Although the difference is quite large, according to real estate experts, the coefficient of 3.8-4.5 is an acceptable average deviation. And nearly 80% of successful real estate transactions have accepted this difference.

Appraisal by home condition

In addition to the location factor, one of the commonly used valuation methods for real estate is to classify properties by housing condition, what type of property is your home? Level 4, Level 3, Level 2, Level 1; In addition, when considering the state of real estate, you need to determine the life of the house based on the time of house construction and home repair to depreciate the price. real estate value.

Valuation through the selling price of neighboring properties

The fourth commonly used valuation method for real estate is based on information from real estate exchanges or the mass media, which makes it easy for you to look up information about real estate. housing prices in the vicinity of the area you live in such as location, area, transaction area to have a basis for price comparison. You can act as a home buyer and conduct a survey of homes that are listed for sale in the area near your home to see the sale price. If you are in a market where real estate and real estate prices are hot, then you can completely increase the asking price by 10% compared to the appraisal information. And if in the event that the real estate market is in danger of freezing, you can use the above valuation methods commonly used for real estate as a tool to set a selling price equal to the price you have surveyed. and add about 5%.

Pricing with support from a local, knowledgeable broker

Another commonly used valuation method for real estate that you should know is to consult the experience of professional brokers. They will give you the fastest and most accurate information on land prices in your area every year. Although many people do not want to hire a real estate agent due to their distrust of third parties, there is no denying that many successful real estate transactions are attributed to this service. Because most brokers often follow and understand the market best, know the price, in addition, have the ability to evaluate properties, negotiate, persuade well and understand the paperwork.

Appraisal through banks for valuation