Why You Should Have Your Property Evaluated
You must always evaluate your property at least once in three years or more often. This is because evaluation offers certain benefits. One thing is clear, without proper evaluation, you may put your property in the market at the wrong price.
If the price of your property is too low, you will be shortchanging yourself and if it is too high, you may not be able to sell in a long time. Here are some other reasons you should get your property evaluated.
You may need it for collateral
When you decide to take a loan, you may need to tender your property as a form of collateral. If your property is undervalued, it may not be acceptable for the loan. Your bank may ask you for more collateral. Things will be easier for you when you know and can prove the actual worth of your property.
The value of properties appreciates depending on the location. So, even if you know the current value of your property now, it may not be the same again after a few years. Apart from that, as the population of a certain city increases, the value of properties in the city will increase because demand will increase.
Another factor that increases the value of a property is development. As more amenities are developed around your community so will the value of your property continue to rise.
Proper evaluation can help guide on certain decision
Considering the rate at which your property rises in value and the cause of the sudden rise, it may not be advisable to sell it at that point. It may be more profitable to wait to get to the end of the upsurge in value before you sell it.
Forex traders will understand this concept better. If you have a currency you want to sell and it suddenly begins to encounter an increase in value, it is better for you to allow it to get to the peak first. This is applicable to sales of property too. Once you see a sign that the value of properties in your location may soon increase, you need to wait.
Here is a good example. Barack Obama, former president of America once lived in Indonesia. The owner of the building was about to put up the building for sale when he learnt that his former tenant was about to become the president of America. He quickly suspended the sale until after the presidential election. And it paid off as the value of the home shot up when Obama won the election. It was no longer and ordinary home. It was the former home of American President.
It is advisable to hire a third party team to evaluate your property as certain attachment may becloud your judgment. For instance, the home where you and your siblings grew up will have so much value in your eyes and there may be nothing special about the home to a prospective buyer. Due to the emotion you have attached to the home, you may over-price it. A third party will be neutral and as such, he will be able to give a sound judgment.