Selling a house is not the sort of thing most of us is accustomed to do every day.
How can you know how much to ask for your house?
Is there a way to calculate the asking price?
Whether you’re selling, mortgaging or renewing your home insurance, knowing the value of your home will be the first thing on your to-do list.
There is a rule of thumb to come to a rough estimate of the value of a house:
The value of your house is roughly 10 years’ worth of rents.
So, if for example you think you could rent your home for €1,000 per month, your house could be valued at €120,000.
This is at least what an investor would be happy to pay for your house. But it may be far from it´s actual market value.
The reality is that there is not a formula one can use to come to a definite value of a property.
The market value of a house will depend on many factors.
For example, the location, the size, layout, any special features, the crime rate in the area, the risk of flooding, the overall condition, age, transport links, how far it is from local amenities and schools, market fluctuation, etc.
Since prices also change over time, finding out for how much similar houses in your area where recently sold for can give a good indication of how much your house might be worth.
Remember that properties not necessarily sold for the asking price. Therefor it is a good idea to find out the actual selling price.
Similar properties sold in the same area may also have very different prices. One street may be noisier than the next. Or one house in the same street may be closer to a bus stop or a local shop.
Another good way to find out how much your house is worth is to use one of the free online house valuation tools available.
If you want a more accurate value than the best way is to contact a couple of local estate agents. They are the most qualified to understand the dynamics of the market and to give you a fair valuation.