Officially, “market value” is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties have each acted knowledgeably, prudently and without compulsion. Here are some quick tips by our experts for you to valuate a property against market value
1. GET A BANK VALUATION
Heading to the bank with full details of the house would be the most common way of getting a rough estimation of the value of the property. We trust banks because ultimately they approve the end financing. Thus, if they can value it at that price the loan obtained would certainly be based on that benchmark.
INFORMATION NEEDED! : Title, renovation details if any, details of built ins and furniture if relevant. Pictures if needed 2. VISIT A PROPERTY VALUATION FIRM
By seeking aid from a property valuer rest assured this is a more on the ground view on the value of your property. Valuation firms normally combine historical and current data to very good use. Most firms also come with advertising and sales services .
3. ASKING A PROPERTY AGENT
Here in Malaysia is common that home owner’s and buyer’s alike seek advice from their known agent to ask for a rough gauge of what their asset is worth. Property agent’s in Malaysia are not qualified so they generally just outsource this part of the job and for the more experienced agents, they compare it with other similar units which are on the market. The risk factor here is that agents are well known to press prices down to achieve sales faster. Especially when market is moving at slow pace. They are the experts of their field and will achieve your objective at selling. But at what price ?
4. DO IT YOURSELF
Some simple tips from our resident writer to the readers. Firstly check on transaction prices in your selected area. How to do so ? There is two simple ways. A person can check on online sites or simply visit their local land office. Prices do not very much for the past 6 month. Malaysia does not have a very elastic property market in the last few years . Secondly, visit reliable online property sources. For instances, i property and property guru in Malaysia. There you can compare your unit with like for like listings posted by agents. By averaging out what others are selling their property for you would likely have a feel of what your own is worth.
Combine the first and second tip and surely you will not be far of from a REALISTIC price. If this still does not suffice revisit tip 1 , 2 and 3.
Written By,Daniel Wong