How to estimate the market value of a property

Evaluating the property accurately helps you to carry out many of your financial affairs that are very important, as determining the current market value of the property facilitates the process of buying or selling, or even the process of borrowing from the bank, and it also contributes to estimating the tax rate on the value of the property professionally, in addition to estimating the financial wealth that you own and thus facilitating all the procedures that result from that.

Therefore, knowing the best ways to evaluate real estate plays an important role in ensuring that the value of your property is estimated accurately, and avoids making a mistake that may be fatal. There are many ways through which a property can be evaluated, but in this article, we will mention the most important, credible, and accurate methods for determining its market value.

Relying on reliable real estate companies

Highly credible real estate agencies can estimate the value of real estate well, due to their extensive experience in buying and selling, in addition to having a huge amount of data that qualifies them to estimate the market value of the property accurately. Several things are taken into account when carrying out the evaluation process, the most important of which are the location of the property and its trends, its modernity and proximity to public services, in addition to its interior and exterior design, its area, the number of rooms it contains, and so on.

Here comes your role in choosing the most credible real estate agent, who you can trust in their appraisal process.

Use the most professional online assessment tools

Many real estate appraisal tools are used as indicators to calculate the market value of a property based on real estate records data from previous prices and sales, as they are entered into specific mathematical and statistical models to predict real estate prices.

Evaluation tools are characterized by accuracy, as they usually rely on a huge amount of data and advanced mathematical models that are updated and developed successively, to ensure the continuity of accuracy and modernity of their outputs. Valuation tools are usually used by lenders such as banks to help them evaluate the property as collateral for the loans they grant to borrowers, and some real estate companies that are accurate in evaluating real estate rely on them.

Estimating the value of the property through the calculation of the official real estate price index

One highly credible way in which property prices are accurately evaluated is the House Price Index. The real estate price index is based on historical data of real estate prices based on certain statistical models, as it is published in the form of monthly reports by the official authorities in each country, through which real estate prices can be accurately predicted over time.

Work with a professional real estate appraiser

Another option to know or predict the true value of a property is to look for a professional real estate evaluator who can estimate the market value of your property over time. The real estate evaluator usually depends on estimating the value of the property on many factors, most notably the location, where the determination of the city and neighborhood plays a major role in the difference in prices, in addition to the specifications of the property from the inside and outside and the date of its construction, not to mention the possibility of comparing it with other properties in the same market such as cost, depreciation period and other factors that allow the ability to predict.

But on the other hand, working with a real estate appraiser is expensive, and those wishing to buy or sell property may not be able to afford it, so it is usually hired by large real estate companies or banks to evaluate the property as collateral for the loans provided.

Valuation by comparing property properties

If you cannot work with a competent real estate evaluator, then you can do the real estate appraisal yourself based on comparing and analyzing the characteristics and specifications of your property with other properties in the same market.

Among the most important of these specifications are the components of the building, its area, and date of construction, in addition to taking into account any additional modifications or improvements made to the property to renovate it, not to mention the importance of its location, neighborhood and other important characteristics that play a major role in estimating the market value of the property.

Although your valuation may not provide results as accurately and professionally as some custom tools or real estate appraisers, it does contribute significantly to providing a good idea of prices in the market that can be relied upon in the buying and selling processes.