When you want to determine your home value, you can get confused easily.
A home is one of the greatest assets a person can own. So, you need to think twice before offering your home for sale to set a delicious deal, especially when you’re an expat in Bahrain because you might not be aware of the market.
However, figuring out how much your home is worth can be tricky. Essentially, calculating home value involves determining the market value of your home. After that, you can figure out what you’ll need to spend to make your home safe and comfortable.
However, if you are looking for apartments for rent in Bahrain, villas for rent in Bahrain, or a studio for rent in Bahrain, you can just visit the Sakan platform, where you can find tons of real estate listings that you can compare and set a fair home value.
How to Determine Your Home Value
Do you have doubts about the value of the home you’re considering purchasing?
Want to know how much your home is worth?
How much can I get for my house? is a question anybody thinking about selling a home has asked themselves.
The fact that “value” is subjective means that your home’s worth could be more or less depending on the buyer.
So, how do you determine the optimal asking price (the one that will bring in buyers and get you where you need to go)?
To successfully sell or purchase a home in a given region, it is crucial to have a firm grasp on the true market worth of comparable properties in the area and the elements that go into determining that value.
Whether you’re looking to buy or sell, this article will cover the most crucial aspects of the transaction.
Depreciation is where you should start
To determine the market value of your home, you have to calculate its depreciation. Depreciation is the reduction in the value of your home due to wear and tear. It’s calculated by subtracting out-of-pocket costs for home improvements from the market value of your home. For example, if you pay $5,000 for new carpeting, new paint job and a new fence, you would discount those costs from your home’s market value. To find that number, you would add up all of your out-of-pocket costs and divide that number by three. Your answer would be the number of years you need to discount the price of your home before it’s based on the current cost of living.
Residence or Investment
The next step is to determine if your home is a primary residence or an investment property. If it’s an investment property, it will be a good indicator of the home’s resale value. Many homes owned by investors are rented out to individuals who want to live in close proximity to work. Other investors rent out homes to families who want affordable rental options versus buying a house outright. Either way, you’ll have an idea of what it’ll take to get a return on your home once it’s leased out.
Your space in your home will also affect its market value— even if you don’t live there full-time. The amount of square footage your home takes up in a given area will affect its market value as well. A larger space means higher prices since it takes more resources to maintain than a smaller space does. For example, houses with five bedrooms and over 2,000 square feet of living space will cost more than those with fewer bedrooms and less space for bedrooms.
Home Size
A large property might increase in value because of the demand for living space in urban areas.
Since the family needs two bedrooms and a space for guests, the total number of rooms is crucial.
Therefore, the high cost and strong demand for the property can be largely attributed to its generous proportions and abundance of rooms and baths.
Home Location
When you calculate your home value, you need to define the cost of living in Bahrain.
One of the most influential aspects of a property’s worth is its location.
Anyone in the market for a new home wants to know if it is convenient to a wide variety of public amenities, including but not limited to schools, hospitals, dining options, retail centers, and modes of public transit.
The closer a piece of real estate is to convenient public facilities, the higher its asking price will be. So, if you’re in the market to purchase or sell a home, it’s important to think about things like location.
Building Conditions
A new home will often have a higher market value, therefore it’s crucial to know how old your home is.
The more recent the building is, the more the buyer is willing to spend for it because there will be no need for costly repairs or upgrades.
Newly constructed homes typically have pristine paint jobs, kitchens, bathrooms, and other amenities.
However, many buyers might want to live in a historical building when it has a long and prestigious legacy, like someone famous was living there. The house’s high market value is largely attributable to all of these factors, especially when contrasted to other homes in historic districts.
Market Conditions
An individual’s ability to either purchase or sell a home is frequently affected by economic conditions.
This is due to the fact that when the economy is doing well, there are many available jobs, and as a result, people’s incomes rise and their discretionary spending grows.
However, fewer people would be able to enter the housing market if unemployment rises and incomes decline.
As a result, housing costs will decline.
As a result, it is crucial to be aware of the current state of the economy before setting a price for the property.
Available Amenities
Available facilities and amenities can determine your home value.
For example, having a designated parking spot for each unit adds value to the property because it eliminates the need to invest in a garage or leave a vehicle unattended and vulnerable.
Also, Some houses feature little gardens or balconies that are great for hosting barbecues and providing a safe place for the kids to run around.
Because of the lack of these features in comparable homes, the asking price for this one increased.
Calculating home value is essential for anyone who wants to protect their investment from theft or natural disaster damage. Depreciating costs and space in your home will help determine its market value as well— which will help you determine if selling or renting out your house makes sense.
