A careful assessment of the market value of property is very essential both before purchasing or selling a property. One must know the market price so that they don’t get betrayed while buying or selling. According to Landsale4u, market value refers to the value of the property where a seller is ready to sell the property at a particular price and the buyer is ready to buy it at that price.
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What is the market value of property and how is it determined?
Market value is the price that a buyer would pay readily for the property under normal conditions that excludes sales happening due to unforeseen circumstances such as relocation, death of a family member or any other emergency where the seller is forced to sell the property at lower price. Moreover, the market value of the land is based on the following factors:
Internal factors: Construction quality, size of the property, zoning restrictions, soil quality, property type, etc. are some of the internal factors that have a direct bearing on the market value of the property.
External factors: External factors include infrastructure development in the region, nearby amenities, locality, basic facilities etc, determine the value of the property.
Location: One of the ruling factors in determining the price of the land is location. Factors such as how developed, safe and peaceful the neighborhood is, nearby attractions, proximity to civic amenities, transportation network and scenic views are critical factors for property valuation.
Demand and Supply: The price of the property depends majorly on the demand and supply in a particular region. The value is calculated by taking into account the number of lands available for sale in the area versus the number of buyers in that particular area and how quickly a property sells in that area.
How to determine the market value of your property?
- Look out for properties in your neighborhood or nearby locations that are similar to your property and were sold in the last three months. The term “similar” here refers to properties that are alike in size, style, age and location. You can either do this research online yourself and analyse current listings in your area or society or you can take help of a broker, or you can talk to local dealers or neighbours who can give you an idea about the price range of a similar property in the area.
- The next step is to select three similar properties which are identical in each and every aspect of the land that you are intending to sell. Similar in age, size, amenities and style. There might be chances that you are able to find similar properties, but at times you would not, so in that case, you will have to make adjustments in the sale price. For instance, a property similar to yours having extra amenities would be priced higher. Similarly, a property with additional amenities would be priced lower. Accordingly, you will have to make adjustments in the sale price.
- Once you are done comparing properties, adjust the final sale price by adding or subtracting from the final amount. If your property is comparatively newer, larger in size and has additional features, you add up the cost to the final sale price. Similarly, if the property is old, then the deductions should be made accordingly.
- After all these adjustments, the amount you get is the estimated market value of your property.
If you are looking forward to consultation regarding land, you can contact Landsale4u.
Our team of experts will assist you in purchasing land according to your requirements. Moreover we provide a variety of options while purchasing land at the best prices. Visit us at www.landsale4u.com and make your investment today.