Residential, Investment, Capital Market
Planning to sell your home but unsure how to price it? How do we define the “right” price? We listed down tips on how you can arrive at the “right” value for your home and who can help you along your selling journey.
Should you consider getting an appraisal?
According to Forbes, a property appraisal can vary by several factors such as the location, condition, and amenities, whether you’re buying, selling, or refinancing.
However, appraisals aren’t perfect and can still be subject to bias. In cases of low appraisals, sellers are often inclined to getting a second opinion from another appraiser as it can greatly affect the sale of their property. With this, sellers can provide factual evidence to make appraisers reconsider a higher valuation. Moreover, you and the buyer can also come to terms in extending the contract appraisal contingency to allow time for a new appraisal.
Ask for a professional’s help
If a seller is still on the fence even after a second opinion, it might be best to consider tapping a professional agency to handle their property appraisal. Experienced real estate companies can ensure that the property is being sold at the right price and remain competitive in the real estate market based on their industry experience, their current listings as well as based on the demand of the market.
Identifying the “right” value
We’ve listed the three common value appraisals that you will likely encounter in the process of selling your home:
- Zonal value
A Zonal value is a type of valuation where the price placed on a real estate property is used both for taxation purposes and basis for computing the Fair Market Value of the property. Moreover, Bureau of Internal Revenue (BIR) also uses it as the foundation for calculating internal revenue taxes, particularly on Capital Gains Tax (CGT) and Documentary Stamp Tax (DST).
In real estate transactions, a better comparison for this is the Market Value. Compared to the two, Market Value is based on land improvements and infrastructure while the commissioner determines and declares the Zonal Value. Overall, it is an approved zonal schedule of fair market values for real property.
- Fair market value
Fair Market value is the price an asset such as a business or property would sell for on the open market when certain conditions are met. In this type of valuation, both the buyer and seller have adequate information and understanding of relevant facts, a reasonable time to complete a deal and are acting in their own interests, and mutual agreement on the price value of the asset.
- Appraisal value
Appraisal value is the price assigned to a property by a professional real estate appraiser. An appraiser will look into all property details in order to arrive at an appraised value. In some cases, sellers base their selling price on the appraisal value since buyers will likely seek professional advice to ensure that they are getting a good deal with a property.
Getting your home appraised
If you’re still not sure which type of valuation to use, or how to correctly determine the selling price for your home, then let experienced real estate service firms like Santos Knight Frank provide you with real data and an accurate real estate valuation for your property today. We are a renowned real estate services agency that has a great track record of serving clients with services such as occupier services & commercial agency, investment & capital markets, residential & sales leasing, property marketing, research & consultancy, valuation & appraisal, project management, asset management, property management, facilities management, technical services & engineering solutions. Visit our website and speak to our real estate practitioners at https://santosknightfrank.com/.
Learn more about real estate when it comes to valuation and appraisal by reading Highest-and-best-use study: Why you need this before developing your property.