How to Determine the Market Value of your Property
The real estate market in Nigeria is dynamic, as a result the value of properties are constantly changing. Knowing what your property is worth especially when you are trying to buy or sell. The market value of your property is what buyers are willing to pay for it. There is nothing worse than selling way below value and losing money. Below are some factors to consider in determining the value of your property –
Location – Location is key in the demand for homes and it can considerably affect the value of properties in these areas and how much they are purchased.
Physical Characteristics: The size, shape and topography of the property are factors equally important in estimating market value of properties. This have great effect on the use to which it can be put and also impact the eventual cost of development. The more appealing these factors, the higher the value of properties.
Availability of Infrastructure – Properties in locations with essential amenities such as reliable power supply, drainage systems, good roads and more are bound to attract the attention of buyers which will invariably increase the price of the houses compared to underdeveloped areas.
Market Knowledge – Surveying the market will further help to determine the worth of your property. Current listings of similar properties can give you an idea of the real estate price estimate in your area. Also check out recently sold houses in your area, especially if the properties were purchased at impressive prices over the past six months.
Nature of Title – The type of title to properties can determine their worth. Properties with registered titles are likeky to command higher values that those with unregistered titles or just survey plans. The reasons for this are that parties would have to factor in cost of perfecting the title aside from the fact that athose with registered titles are better secured and bankable.
Nature of Interest: Interest in properties can be leasehold, freehold, licence, easement and many more. All these interests have varying degrees of relevance. The nature of interest therefore determines the tenure and certainly the value.
Condition of Property: The stste of repairs of properties have significant impact on value. The lower the cost of repairs, the higher the value and vice versa.
Use of Property: The use of property can be Residential, Commercial, Industrial or Recreational. All these uses have a way of impacting on the value.