If you are planning to sell your home, that’s a good move because real estate agents can help you in getting home value. One of the many benefits of hiring a real estate agent is that they can get you competitive property sale prices.
Although the process through which real estate agents determine home values might seem difficult, it is quite straightforward. In this guide, we discuss the factors considered by real estate agents to determine home value.
Factors Real Estate Agents Consider to Determine Home Value
The following factors will help you understand how real estate agents determine home values.
1. Comparable Sales
Comp, is an abbreviation for comparable sales, used by real estate agents to determine home values. Comps are the recently sold properties in the same neighbourhood and are comparable to the subject property in size, style, and configuration.
However, there are exceptions to this factor. For instance, it could be challenging to estimate the worth of a property in a posh area with high-end finishing, if there are no direct comps in the neighbourhood.
In such a condition, real estate agents determine the market value of a property by considering the overall property market trends. Moreover, TruValueTM by Bayut can be used to determine a property’s value in the UAE as it is a property valuation tool.
2. Comparative Market Analysis
A real estate agent determines home values by doing a comparative market analysis. The realtor constantly monitors the local property market when evaluating the property price.
Recent sale prices and the current demand for comparable properties can be estimated from the local property market. Other elements are also taken into account when understanding the property market.
This helps in identifying the market trend and how it can affect your property’s worth. The realtor can get a good idea of what the potential buyers in an area might spend for a property of a certain configuration.
Consequently, with all this information, the real estate agents determine home values benefiting both sellers and buyers.
3. Age and Condition of the Property
One of the many factors real estate agents consider to determine home value is the age and condition of the property. In general, renovating your property is one of the ways to price your house to sell faster. Such a property will get a higher sales price than the one requiring repairs or is older.
Every rule has an exception, though. For instance, a historically significant property with a good upkeep may be more valued than a newer property.
Nevertheless, there are other aspects of a property’s value that real estate agents also take into account, along with its age and condition.
4. Property Updates and Upgrades
You can get a better sales price for a property that was recently upgraded than the one that hasn’t undergone remodelling. But not all improvements are made equal. Some updates, like the addition of a new roof or remodelling the curb, can increase a property’s worth more than other updates like new curtains or linens.
It is also important to bear in mind that not every upgrade will increase the selling price. The expense of the upgrade, in some cases, can be greater than the value it brings to the property.
This is why we encourage taking advice from a real estate agent before making any upgrades to your property.
5. Property Location
Property location is one of the key factors real estate agents consider to determine a home’s value. For example, properties in affluent areas of Dubai like Palm Jumeirah and Downtown Dubai are more valued than those located in local neighbourhoods. This is because potential buyers are prepared to spend extra cash to live in a posh area.
Similarly, properties with nearby amenities such as reputed schools, hospitals, or parks usually cost more. Whereas, properties located far off, inaccessible to amenities, have a lesser sales price.
Therefore, property location can help real estate agents to determine the price of a property.
TruValueTM – Bayut’s One Step Solution to Property Valuation
TruValueTM is an online property valuation tool by Bayut that uses multiple algorithms and market trends to calculate an estimated market value of residential property in the UAE.
After learning the property’s current market value, sellers and buyers can use TruValueTM to assess if they are receiving the best deals for the subject property.
In conclusion, the value of a property is influenced by a variety of factors. To save yourself from the hassle of property valuation, it is recommended to hire a licenced real estate agent. A professional real estate agent takes into account all of the factors and helps you get the best sales price.
Nevertheless, if you are on a property hunt, you can consider these properties for sale in the UAE to find your ideal pick:
Stay tuned to the UAE’s top property blog for more information on the real estate market.
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