How much is my house – the price of selling or renting your property

Selling or renting a home when you have little experience in this business can be very confusing.

Today we analyze the process of determining the cost of a property, it is one of the elements that immediately attracts the attention of buyers, followed by its good image.

How do I know the value of my house?

To offer a property for sale or rent to the public, you will need an appraisal to determine its price. It analyzes the conditions of the house, its location, the characteristics of the region, and the market. The evaluation may also be requested for these purposes:

  • Mortgage Credit Process
  • insurance contract
  • Determine property tax

Types of real estate valuation

There are two types of real estate appraisal, both designed to find out the value of a home, but they have different uses:

It allows knowing the real value of the property to determine a competitive sale or rent price in the market. This calculation takes into account building property, land, location, services, and market.

Determining the material value of the real estate and the facilities in it, taking into account the location of the property and the square meter of building and land. In general, it is in favor of agreeing on the property tax, but it is also necessary to determine the sale price of the house, since selling for less than the cadastral value can create suspicion of imitation or evasion and have tax or criminal consequences.

How is the evaluation done?

Real estate appraisal must be carried out by an expert authorized by the various state treasuries or municipal registries in which the property is located. Likewise, you must have a record with the Federal Mortgage Association (SHF), which regulates the valuation of private real estate.

By valuation, three types of quoted values ​​for a house are obtained:

  • Material value: Calculation of building materials and fixtures.
  • Commercial value: takes into account the area and property surrounding the property.
  • Income value: Determines the estimated amount to be paid for renting or purchasing the property.

These types of values ​​are obtained through three methods that together provide the total value of the property: the physical or direct approach, the comparative market approach, and the capitalization approach.

How much does an assessment cost?

There are two ways to pay for an evaluation. Some experts or institutions have fixed prices according to the value of the house. For example, the price of a home equal to or less than 500,000 pesos is on average 1,500 pesos; As for properties worth between $500.001 and 1,000,000 pesos, the average is 2,800 pesos.

On the other hand, the cost is also calculated about the square meter of construction. The average price per square meter varies between locations.

Final sale/rent price

Although the evaluation opinion determines the true value of the property and allows you to know the value of the house, this is only a reference point for determining the sale or rental price. You can increase the price of either of these two operations, taking into account all the expenses generated in this task, and then, conduct the corresponding negotiations until an agreement is reached with the buyer or tenant. Just keep in mind that these prices should never be overestimated compared to the market. Specifically, in the rental price, the law states that the approximate value must be 0.8% of the value of the house.

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