Lamudi Looks At How To Calculate Home’s Value In Kenya
Lamudi looks at how you can calculate your home value before selling it
The value of your home is very important, especially when it is time to sell the property or if you are looking at get a home loan for investment. Most banks will have to inspect the property before they consider the amount of money to lend you. The value is determined by a number of factors including location, the size of the land, amenities and finishing.
Dan Karua, Managing Director of leading property portal Lamudi Kenya, said: “Home valuation helps you get all the returns during a sale. We have had cases where properties have been sold for more than the valuation price or even less. To avoid this, make sure you have an idea of what your property is worth before launching into the selling process.“
To help house-hunters through this process, Lamudi takes a closer look at how you can calculate your home’s value.
Step 1: Gather information on comparable sales in your area.
You can get this information from agents, online real estate portals, newspaper classifieds and magazines. Look for recent sales in the area that are similar to your property to give you an idea of how much your home is worth. Look for houses that are very similar to yours in order to get the right value.
Step 2: Take out the prices that do not represent your market.
Look out for properties that took a long or short time to sell, and exclude them from your calculations. Properties which spend too long or too short time in the market could mean the owner priced it too high or too low. If there is a house close to the road or the highway and yours is not, remove that from the comparison list as well. Make sure the listings that you gather match your property.
Step 3: Do the calculations.
Once you have the final list of houses similar to yours, take the total sale prices and divide that by the number of listings so that you can get the average price of a house comparable to yours. To get the best results, get sale prices of at least four or five houses.
Step 4: Analyze the differences.
Finally, look for differences between your house and the final listings. For example, if the average price is Kshs. 20 million but you had spent Kshs. 100,000 to remodel the living room and the kitchen, then the value of your house could be higher.
“Calculating the right value ensures that you attract buyers because the pricing is right according to the location and the finishing of the house,” Mr. Karua concluded.
Launched in 2013, Lamudi is a global property portal focusing exclusively on emerging markets. The fast-growing platform is currently available in 32 countries in Asia, the Middle East, Africa and Latin America, with more than 900,000 real estate listings across its global network. The leading real estate marketplace offers sellers, buyers, landlords and renters a secure and easy-to-use platform to find or list properties online.