For a long time, realtors and real estate industry experts have been working on using a modern approach to estimate the market value of real estate and properties, using modern technological tools and AI based algorithms.
Now, this modern real estate resource is not just a fantasy anymore. Online property valuation tools are here, and they’re here to stay. These tools leverage data such as: recent property sales, real time market trends, and specific property details to give an accurate property valuation for any property.
With the assimilation of online tools and data analytics, online property valuations have become hugely popular for their convenience, speed & accuracy. But to get the most out of them, it’s essential to complement them with good research and local market research.
In this article we’ll look at exactly what you need to do to find the market value of an apartment through online property valuation tools.
Steps To Determine the Market Value of An Apartment
Research Comparable Properties
The first step in assessing the market value of an apartment is to research comparable properties. In industry terms, these are known as “comps.” These are properties that have recently sold in the same area and share similar characteristics with the apartment in question. Key factors to consider include:
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Size: The square footage of the apartment.
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Age: The construction year and the condition of the building.
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Amenities: Features such as parking, gym, swimming pool, and security.
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Location: Proximity to key amenities like schools, hospitals, shopping centres, and public transport.
Online property valuations like Assetscan can provide invaluable information about recent sales and comparable properties at the click of a button. By analysing these properties, you can get a sense of where your property stands in the market.
Assess the Specific Characteristics of the Apartment
Next, evaluate the unique characteristics of the apartment itself. This includes:
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Number of Bedrooms and Bathrooms: More bedrooms and bathrooms usually increase a property’s value.
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Size: Larger apartments generally command higher prices.
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Condition: Newly renovated apartments or those in excellent condition are typically valued higher.
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Unique Features: Balconies, terraces, views, or high-end finishes can significantly boost the apartment’s market value.
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Upgrades and Renovations: Recent improvements can increase value, so note any upgrades like a modern kitchen, updated bathrooms, or new flooring.
Consider Location Factors
Location plays a pivotal role in property valuation. Factors to consider include:
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Neighbourhood Desirability: Some areas are more sought after due to safety, beauty, or community amenities.
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Proximity to Key Services: Being close to schools, hospitals, public transportation, and shopping centres can increase property value.
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Market Trends: Look at the prevailing real estate market trends in the area. Are property prices rising or falling? Is there a demand for properties in the locality? Are more people buying or selling houses?
If more people are buying houses then the market is in a good place and future trends look promising. Online property valuation tools are invaluable in finding these conclusions.
Use Online Property Valuation Tools
Once you know what you’re looking for and have an idea about the property and market details, then you can supplement that with online property valuation tools to get an accurate market value.
Many real estate portals offer calculators where you input details such as city, project, property type, size, and number of bedrooms. These tools use algorithms to provide an estimated market value based on current data.
How To Get The Most Accurate Property Valuation?
When you get to using online valuation tools, there are still some steps you can take to further increase their accuracy.
Compare Prices
If you’re looking to buy or sell a 2BHK apartment, look what other apartments in the same locality or neighbourhood are valued at. This is the best way to know if you’re getting an accurate valuation or not.
Assess the Property’s Characteristics
Check out all aspects of the apartment, including its number of bedrooms and bathrooms, size, condition, and distinguishing features. Consider any recent upgrades or renovations that could affect the property’s value.
Use Multiple Online Valuation Tools
One property valuation tool can give you a good idea about the property’s value. If you get a similar ballpark estimate using multiple tools, then you know you’re on the right track. Experiment with multiple tools, take your time, and you’ll be able to identify the most accurate valuation.
Each tool might use different data sets and algorithms, so combining their insights can provide a more reliable valuation.
Combine Online Valuations With Local Market Insights
While online research is important, most homebuyers don’t buy a house until consulting with a local property expert, especially in a new place. Use your online market valuation to work with a real estate agent.
An in-person valuation combined with an online market valuation is the best way to get as accurate a property valuation as possible.
Bottom Line
By taking your time, doing your research, and making notes on comparable properties, you can arrive at a confident, reliable estimate of an apartment’s market value using online property valuation tools.
Supplementing this with an in-person valuation will be like putting the cherry on top of a cake, further enhancing your valuation and helping you make better real estate investment decisions.
Assetscan is a smart real estate buddy for AI-powered property valuations. It’s a user friendly platform, assisting investors with accurate micro market updates, and real time property valuations and location trends.
Through Assetscan, buyers can leverage our AI-powered insights to make smarter, data-driven decisions and ensure they capitalize on the best opportunities in this thriving market.
