Maadi is one of the residential cities in Egypt with very uniquely divided urban squares. The city of Maadi is a perfect destination for many foreigners, a factor that has led to the growth of its real estate market. One property study done by a firm called House Solution Egypt listed real estate in Maadi as the best among other residential cities in Egypt.
Despite there being a growing real estate market in Maadi, there are some factors you need to put into consideration to get the best out of a home sale. One of the most essential elements that homeowners need to consider before selling their home is first determining its real value.
While this may look like a straightforward activity, it comes tied to many other factors. In fact, if you were to summon homeowners in Maadi, you would realize that very few know the actual value of their home, especially when they have used it for an extended period. Below is a guide to help any homeowners finding it challenging to determine the real value of their home regardless of whether they want to sell it, plan for refinancing or know the level of improvement their home needs.
Leverage online tools
It is not a coincidence that this trick is at the top of the list. Considering the digital revolutionization currently going on not only in Maadi and Egypt but all over the world, it is hard to effectively penetrate in the real estate market without the use of the internet. If you visit many real estate websites, you will find facts about homes similar to yours in terms of size, age, design, fittings, appliances and integrated systems. These factors plus the prevailing market conditions and tax rates are put together and a value estimate that can be used for your home given. The good thing here is that most online valuation tools are free to use.
While many online tools are convenient when it comes to determining the value of a home, always do more research to confirm the correctness of their predictions.
Understand the market value
The second most important factor that should consider to know the value of your home is understanding what market value really means. The market value is what potential buyers are willing to pay for your home and is always a function of several factors. Let’s look at some of these factors:
- Location– Check where your home is located in Maadi and evaluate what real estate investors say about investing in it. The value of your home is also affected by closeness to social amenities such as hospitals and schools.
- Mortgage rates– The market value of a home increases with decreasing mortgage rates and balances. Although there is always a deal for every home regardless of its mortgage, buyers prefer homes with low mortgage rates.
- Security– A home installed with reliable security systems has more value than a home with no security systems. Security and safety of belongings and people living in a home are critical factors in modern-day real estates and hence this is an important market and home value determinant.
- Home type and design– These are factors such as the number of rooms in your home, the floor area, curb appeal and components installed in your home. The better and more functional these factors are, the better the market value of your home.
Evaluate comparables
If you are looking for a hassle-free way to determine the value of your home, just check the sale value of homes with similar features in your locality. For correct estimates, you must look for homes that match perfectly with your home. If there are slight differences in the value distinguishing features between your home and the comparables, you should evaluate how this would affect your value estimate.
You also have to be conscious of the time your comps were sold to reduce errors on the estimates. Remember that the real estate market in Maadi can change in a very short time and hence you must use recently sold comps for a correct forecast. Lastly, it would help if you used more than one comparable homes to spread the errors and make the value estimate more accurate.
Check your tax records
A property tax report of your home can also help you determine its value. For the local government to come up with a taxation rate for your home, they must have a rough estimate of your property’s value. You can get these tax reports from the local taxing authority.
If you know the amount you pay for property tax in a year and the taxation rate, you can simply estimate the value of your property by dividing this amount and the rate. Since the tax is not on its own a satisfactory home value evaluation method, you also need to use these other methods to confirm your estimates.
Seek appraiser’s services
It is always good to be sure that your estimates are somewhere close to what the current local market requires. Appraisal services although common for home buyers could help a homeowner get the correct value of the home. Since appraisers use already set residential regulations when determining the value of your home, you are likely to get an accurate estimate. An appraiser if hired, will have to visit your home to assess its current condition and what other similar homes in your locality are fetching in the market.
The bottom line
The only way to compensate for the financial commitment and attachment involved in buying and maintaining a home is securing a reasonable deal when it is time to sell it. You will not achieve this if you do not at the start of it all determine its real value. If you follow these tips, you can be assured that you will be selling your home at the most reasonable price and for its exact current value. Keep in mind that selling a home is not just about fulfilling your needs but also the requirements of the current real estate market in Maadi.