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When you want to sell a house, professional home valuation is a tremendous asset. These assessments provide relevant information about a home’s current value based on several factors. For insight into how these home assessments work, the below guide introduces you to the significant aspects.

Real Estate Guide to Home Valuations

What Is a Home Valuation?

A home doesn’t have a fixed value, like many other assets. Instead, the value fluctuates based on many factors, including trends in the real estate market, the current supply and demand for properties, and environmental factors. For this reason, buyers and sellers will typically get a home valuation. This assessment helps determine the true value of a property.

How Is Value Determined?

There are a few approaches to determine the value of a property. The most common for real estate appraisals is a sales comparison approach. With this, you compare a home to similar properties that have recently sold in the area. The appraiser must be well-versed in a specific market area to adjust for factors such as square footage, acreage, and amenities.

sell a houseAnother method is the cost approach, which estimates a property’s value by calculating the cost of a replacement minus the decline in property value over time. Essentially, it removes the element of a home’s “wear and tear” from the equation.

A third—and more complicated approach—is the income approach, which estimates how much a property is worth, based on its revenue potential. Investors typically use this to determine whether a purchase will be profitable.

What Are the Benefits of a Home Valuation?

A home valuation can provide many benefits, particularly if you’re looking to sell a house. First, sellers can establish a reasonable expectation of cost and balance a reasonable asking price and securing a solid return on investment. It helps sellers set a fair price based on current market demands for the best chance of a quick sale.

Home valuations also provide significant information for a given property, such as knowledge about the local market. Sellers can avoid looking at their properties in isolation and better relate them to the surrounding neighborhood and current sales on similar properties. Additionally, a valuation can also alert sellers to any home improvements they can make to increase resale value.

 

If you want to sell a house and need a home valuation, trust the professionals at Move Realty in Cottleville, MO. Specializing in commercial and residential real estate, they’re well-versed in everything from new home builds to military relocation, whether you want to sell or buy a house. To request a consultation, call (636) 233-8334. Visit them online for more information about their services.

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