When selling your Orlando home, it’s important to determine the value of the property to be sure you’re getting your money’s worth. Often if you hire a real estate agent they’ll likely be the ones to value the property for you, but if you’re selling For Sale By Owner (FSBO) then you’ll need to be aware of the market value for your home in Orlando before listing it.
Thankfully, we’ve got the three main approaches that appraisers use to evaluate housing in Orlando, and more factors to consider when determining the value of your property!
The Income Approach
This is where an appraiser, or yourself, will look at the retail market rent for other comparable properties in order to get a good idea of the potential income the house is expected to give out. If there is similar housing around your neighborhood, check out what they’re expecting in prices and offers and compare it to your property.
The Cost Approach
Once that approach is done, the appraiser in question will look into how much it would cost to rebuild the property from the roof to its very foundations. This has more variables involved as you have to consider what labor costs would be, as well as materials available in Orlando (importing would be more expensive).
The Sales Comparison Approach
After the second approach is the Sales Comparison, where the appraiser will take into consideration the recent sales for comparable properties that have sold successfully. This approach automatically assumes that a buyer won’t pay more for a property than other buyers have, so it’s an important one to look into.
There are other factors that come into play with property value, such as the value of the area. For instance, if the local school district is very high quality then that increases the value, as schools are incredibly important to a number of families.
In addition, the proximity to shopping centers is of good value, along with employment opportunities such as neighborhoods with good links to the city. If the property is near highways, public transport, or utility lines, the home’s value will be altered depending on how it will affect the future homeowner.
What Else Can Influence Property Value?
There are plenty of other factors to consider when evaluating your property’s value. For example, if your Orlando home is quite large, it’s more likely to have a positive impact on the value. A home’s value is roughly estimated at price per square foot, so the larger space the larger the sale price.
In addition, age and condition both affect the value of your Orlando property. Newer homes are likely to be appraised at a higher value, as not only is the home less susceptible to necessary age-related repairs, it will also have newer utilities such as plumbing, electricals, and roofing. On the other hand, if your home requires repairs then your value will decrease, as this issue will only be passed on to the potential buyer to fix.
What Can Negatively Affect Property Value?
In Orlando, there can be a number of regional reasons why your property may lose value, such as the chance of being affected by extreme weather or chance encounters with alligators if your home is near them.
Take into account any flood zones near your property, and the cleanliness of your neighbor’s yards as well. A buyer may be dissuaded by an unkempt or junk-filled garden and this can affect the value in the long run. You may also want to consider the kind of roads nearby – are they busy main roads or smaller commercial roads? Depending on the type, it’s possible they can decrease the value of your Orlando home.
Determining the value of your property in Orlando FL may seem like an uphill struggle with complicated factors at first, but it can be a simple step-by-step process done either by you or a hired appraiser. If you need any further help, don’t hesitate to contact The Local House Buyers for assistance!