Putting A Price On Your House
Posted on December 31, 2008
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Just twelve months ago many homeowners had a pretty good idea of what their houses were worth, and after a decade of property price gains most were very happy with the level of equity that they had in their homes. However, over the past year home prices have been falling and this has resulted in many homeowners simply losing track of what their house might now be worth.
There are many reasons for the falling values of homes for homeowners, mainly being the current credit crisis, which will new house buyers off the market as there are no mortgages available anymore.
Homeowners decide to try and find out the price of their house for one of a range of reasons. Some may simply be curious and want to know what their major asset is now worth; some may be concerned about falling into negative equity and want to check how their home price has been affected. Of course the main reasons why people try to find out the price of the home is either to put the home on the market for sale or because they are thinking about taking out a secured loan against the property and therefore need to find out the equity levels.
It is vital in the current climate to try and get the most accurate valuation on your house so that you know what the house is worth following nearly a year of home price drops. You can get an estate agent to come out and provide you with a valuation on the property. However, there is a risk that you could end up with a valuation that is either too high or too low depending on whether the estate agent is looking to get increased commission on the sale of the house or whether the estate agent wants to try and get your house sold as quickly as possible.
This is why it is a good idea to get a valuation from around three different estate agents in the area. Once you have received the figure from each estate agent you can compare them to see whether the valuations are vastly different from each agent or pretty much the same sort of figure. You should not let on that you have already had a valuation to the second and third estate agents otherwise you may find that they provide a valuation based on the one that you have already received rather than a totally independent valuation.
It is important that you also put a little work into getting an accurate valuation on your house, and one way that you can do this is by checking out the price of properties for sale that are similar to yours in the same sort of area. You can do this easily and quickly online or simply by checking the local papers that advertise houses for sale. You can then see of the sale price is along the same lines as the valuations that you have received.
One thing that you should avoid doing if you are putting your property up for sale is inflating the asking price if you are disappointed with the valuation. Remember, house prices have fallen over the past year and your home may be worth far less than you imagined. However, if you inflate the asking price you may find that potential buyers are unable or unwilling to make an offer and your property may be left stagnating on the estate agent’s books.
If your property does not sell at your desired price and you still have equity in your home, then secured loans could help to improve your current home removing the need to move. For more information on property prices and finding out your properties worth read the articles on a financial advisor to find you a mortgage
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