How to Calculate Property Value in an Area
Property value is the process of determining the market value, investment, insurance or other type of value, of a property. Usually, this appraisal activity is carried out by property appraisers through a bank or through a third party. The results of the appraisal are not only needed by property buyers, but also by property agents and investors who are looking for property.
Factors Affecting Property Value
Just like the buying and selling price of the property itself, there are several factors that affect the value of a property, namely:
Location is one of the important factors that affect the value of a property.
We all know that properties in the city center are more expensive than properties in the suburbs. In addition, houses that have difficult access are valued lower when compared to houses that are located on the side of the main road. In addition, public facilities such as shopping centers, markets, schools and hospitals are also included in the location factor.
Age and Model build
The next factor that affects property value is the model and age of the building.
In this case, the houses built with the latest models are more liked by the public than the old models. For example, most people today prefer minimalist homes to simple home models. So don't be surprised if the property value of a contemporary minimalist house in Adhi City Sentul is higher than other housing. This also applies to the age of the building. The older he is, the less interested and selling value.
There are some buyers who don't like asymmetrical land or houses.
In this case, the shape of the land is one of the factors that significantly influences the value of a property.
Increase in Prices Around the Property
Just like consumer goods, the price of a property generally follows market prices.
If the prices of the surrounding properties tend to increase, then the prices of those properties will also increase. It can relate to location factors or the presence of infrastructure, such as toll roads or railroads. For example, in an area a station will be built that is connected to MRT access. Automatically, the price of houses near the station in the vicinity will also increase.
Tips for Knowing the Value of Private Property
Many property owners are starting to ask how much their property is worth. Because of this, it is important to know the value of one's own property. At least, there are several tips for knowing the value of private property, including:
Ask a Property Appraiser
The first tip is to ask directly to the experts, namely property appraisers.
As the name suggests, property appraisers have the task of appraising or estimating property prices from past prices, to then be sold or purchased by clients. With existing knowledge, property appraisers will know how the condition of the property in the market. Therefore, use their expertise to assess your property.
Price Per Meter
Furthermore, you can check the property value by its size. Try to check how much the price of land and buildings is per meter at the location where the building is standing. Then, calculate the estimated price according to the area of the building or land that you own.
You can also do comparisons with similar properties, for example comparing two Type 45 houses. There are also several factors that make comparable property prices more expensive than your property.
For example, is it because the house has a better view, more bedrooms, and so on.
Having more knowledge about property prices on the market is very important. By knowing this, you will know the selling price as well as the investment prospects of the property. But of course, this analysis requires expertise in certain fields.
Check Weaknesses and Strengths
Knowing the advantages and disadvantages of property is very important. If the property is still good, then the value of your property will last or even continue to increase following market prices.
However, if the property has deficiencies or damage, it can lower the selling price of the property.