Looking to buy or sell your land or house but you are not sure how much to price it? Property valuation is essential to any person selling or buying a piece of property. No single individual wishes to pay more for a house, or land or receive less for their own house or land. That is why people hire valuers (before handing the property over to listing companies) whose main task is to calculate the market value of said property.
Private valuers in Kenya can be quite expensive and that is why we have outlined simple steps to follow when valuing property without hiring a valuer to get the best offer.
1. What features does this property have?
If it is a house that you wish to list and are not sure how much it would cost, make a list of its features. For example, list the year it was built, number of rooms, roof type, landscaping, fencing, or walls among other features that may help in estimating the value of the house.
2. Compare and contrast similar properties.
Listing companies have several properties on sale that might be similar to yours. Use the information they have provided to gauge the value of your property. Value might differ due to several amenities and locations, but it would go a great way in avoiding underestimating your property value.
3. Rental income
On average, most real estates` repayment period is 15 years. This comes in handy when estimating the cost if you are a buyer. If the rent collected in the 15 years does not equal the cost of the project, then the property is not viable.
4. Municipal evaluation
The worth used by municipalities especially in Kenya should not be included in the assessment purposes during valuing. This is because it does not always reflect market variances.
5. Demand vs supply
If the location of the house and the amenities are okay, then the demand for the house rises. Let us take, for example, a piece of property that is on sale by the owner and is close to a famous park. This property already has the potential to be developed into a hotel since supply is already present. For this piece of property, as the property owner or as a realtor, you will price it differently to a similar property of the same size but a different location with no supply.