Location

The first thing you should take into consider when determinate a property’s value is its location. There are several questions you must ask yourself:  Where is the property located? Is it on a wide road or in a small alley? What are the surrounding amenities? Does the neighborhood has development potential?

Housing products located in a crowded neighbourhood, near main routes, or in areas with completed and synchronized infrastructure are likely to have higher prices.

Real estate appraisal or valuation is the way of determining the housing value at a certain time

Property status

The property’s status and conditions are important factors contributing to property value. For lands, it reflects through geological factors. For housing products, you should pay attention to the condition of the house. Does it belong to the affordable segment or the high-end segment? What is the starting date of construction? 

Comparison

Another way of valuation is by comparing the property with others with the same characteristics such as location, area, utility, design, etc. Therefore, you can determinate the price range of the property that you are about to buy/sell. Or you can ask your future neighbours to know how much they paid for their homes. Keep in mind that depending on the location, the price may vary by 5% to 10% compared to your valuation.

Price list

Each city/province across the country has an official real estate price list issued by the authority. This is a good reference source when determining the house’s value, along with other real estate websites and platforms.

The actual housing price is normally calculated by the number on the official price list multiplied by 3.8 to 4.5 times, which is the odds ratio between the State-prescribed land price and the actual market land price.

In addition to what we mentioned above, you can also save time and effort by using valuation services provided by brokerage companies or banks. As these institutions are sensitive to market changes, the result is much more accurate. 

However, due to the strict process, bank’s property valuation service would take more time, thus, might become a waste of opportunity. The price provided by the bank might also vary by more than 20%.

To have a wise decision and avoid unwanted loses, you should put time and effort in property valuation. Try different methods and compare the result is the best way the get the most accurate.