Archive for category Property Management
How do I know how much my Property is Worth?
Posted by Top Home Loans in Mortgage News, Property Management on August 18, 2010
Before speaking with a mortgage broker or calling your bank, it is critical that you know how much your property value is worth. The problem is that you have no idea how much your property is worth. You have never taken a class on property valuations and you are not a real estate agent, so how do you know.
You could hire a real estate agent or a real estate appraiser; however, there are several costs to getting this done, and it won’t be worth it in most cases.
You could look at your property tax statement for the property valuation; however, this is usually old, and it will be out of line in comparison with the actual property value. This is not the most accurate way to value your property.
The best way to value your property is by using MLS. The trick is to log on and search for houses in your neighborhood. These houses will be what you compare your house to. You will need to make adjustments on the price to match what you think your property value is worth. After you do a comparison to several houses, then you will have a rough estimate on what your property value is worth. Once you have an accurate value, then you need to increase that value by about 30%. This will allow you to accommodate for things you may have missed. Keep in mind that you will rarely get this value, but this will allow for your mortgage to get the best value.
What happens when there are no properties selling in your area?
If you cannot find any properties to compare against other properties, then you will need to determine the value on your own. You will need to think about how much you figure you could sell the property for, then you would want to increase this value by 20% or 30%. This will allow you to have an accurate value.
Once you know how much your property value is worth, then you can talk to the bank with confidence. When your bank asks you how much your property is worth, then you will be able to answer that question accurately and confidently.
How do you determine your property value? What do you think your house is worth? Leave your response in the comments below.
Save your Mortgage from the Bank. Simply Mortgages can Help!
Welcome back!