Putting a property for sale or for rent in the case of many, however, to do it safely and properly you must take certain precautions and make an appraisal

Selling or renting a house when you have little experience in that work can be very confusing. There are owners who must deal with many issues that are unknown, others, on the other hand, prefer to make the task easier by leaving everything in the hands of a real estate company.

According to the experts, the eBay real estate portal, correctly determining the cost of a property is essential, since it is one of the elements that immediately capture the attention of buyers, followed by a good image of it. Checkout services of Home Sprout Properties for accurate appraisal and fast deal.

How to know the value of my house?

To sell or rent a property you will need an appraisal to determine the price. It analyzes the conditions of the house, its location, the characteristics of the area and the market. An appraisal can also be requested to process a mortgage loan, take out home insurance or determine the property tax.

Within real estate appraisals, there are two types and both are designed to know how much a house is worth, but with different uses.

The commercial appraisal allows knowing the real value of the property to establish a sale or rent price that competes in the market. In this calculation, the construction of the property, the land, the location, the services, and the market are taken into account.

While in the cadastral appraisal the physical value of the land and the buildings found therein is determined, considering the location of the property and the square meters of construction and land. Generally, it is a basis for agreeing on the property tax, but it is also a requirement to set a house sale price since selling at a value lower than the cadastral value can create suspicion of simulation or evasion and have tax or criminal consequences.

How is an appraisal made?

The real estate appraisal must be carried out by an expert authorized by a state treasury or a municipal cadastre where the property is located. Likewise, it must have a registry with the Federal Mortgage Society if any, which regulates the valuation of private real estate. Through the appraisal, three types of quoted values of home are obtained.

First, the physical value, which is the calculation of construction materials and facilities. In second place is the commercial value, which takes into account the area and the properties adjacent to the property. In third and last place is the value of income, which establishes the estimated amount to be paid for rent or purchase of the property.

These types of values are obtained through three approaches that in sum contribute the total value of the property: the physical or direct approach, the comparative market approach, and the capitalization approach.

How much does it cost to make an appraisal?

There are two ways to pay for an appraisal. Some experts or institutions have fixed rates according to the value of the home. On the other hand, the cost is also calculated in relation to the square meters of the construction. Some companies such as Home Sprout Properties would appraise your house for free and offer you the best deal.

Final price

Although the opinion of the appraisal determines the real value of the property and lets you know how much a house is worth, this is only a reference point to establish the sale or rental price. You can increase the price of any of these two processes, taking into account all the expenses generated in this task and, subsequently, make the corresponding negotiations until reaching an agreement with the buyer or tenant. Just keep in mind that these prices should never be overvalued compared to the market. Specifically, in the rental price, the law establishes that the approximate value must be 0.8% of the value of the home.

Author's Bio: 

Angelina is a regular contributor to The Independent.