Your Property Is Normally Your Biggest Asset
Real estate appraisals are used to determine the value of properties based on a comparative market analysis. This includes the condition of the property, neighbourhood growth, properties that are currently on the market and what has sold recently. Not to be confused with a licensed Valuation from the banks’ perspective.
Cost approach method is when the Buyers compares what the costs would be for an equivalent property if he were to rebuild it.
Income capitalization approach is where an investor values the property based on the income, he can potentially make out of it.
Repairs and maintenance costs must be considered when valuing your property for immediate work, future repairs and maintenance and the cost of replacement parts for any equipment that the property has.
The easiest way to determine your building’s maintenance costs is to get a building & pest report for your property prior to selling.
This provides you with items that may be a simple fix that you could remedy before going to market or more extensive ones that you can have quotes ready for once it does go to market i.e., costs to replace the fence, repair the leak in the bathroom.
Understand the current market value of each part of your property and add them up to determine the current market value of the whole.
Once you have this information, you can begin strategizing your next move.