What Matters When it Comes to Real Estate Appraisals In Thailand
Do you want to know what factors have the biggest influence on a real estate appraisal? A home appraisal is an impartial judgment of how much your house is truly worth, depending on every aspect of the property, such as the number of bathrooms or the quality of the community in which the home is situated.
All of these factors may and will influence how a professional appraiser determines the worth of your house, villa, or apartment. A house appraisal is crucial for you because it allows you to determine what the asking price for your house should be, but it is also beneficial to prospective buyers. When a buyer obtains a mortgage(or cash as it for foreign buyers), the lender wants to be assured that the money is being loaned on a property that is worth the money. Whether someone is obtaining a mortgage to purchase a home or a land loan, a lender will need an appraisal or bank appraisal. As a seller, you must understand what factors influence home or land assessment value so that you may do all possible to ensure that your property is priced appropriately when it goes on the market in Thailand.
Things Home Appraisers Look For
We'll go through some of the items home appraisers look for when determining the worth of your house. If any of these issues are preventing your house from selling for a higher price, we recommend addressing them right now. After all, there will almost certainly be a condition in the real estate contract stating that the house must appraise for at least the purchase amount.
An unmaintained home may reduce its value.
Although appraisers are experts who should evaluate your house objectively, having an untidy property may reflect how little you care for the place you live in, which may suggest further concerns such as decay waste, and water damage.
House appraisers are simply human, and people love to assess things based on what they can see, therefore if you have a dirty property, there is a CHANCE that they may lower the worth of the home as a result.
TIP: So don't be a slacker. Before your house is assessed, make sure it is as clean as possible.
They also consider the outside condition.
It goes without saying that the appraiser will assess the outside of your house as well. As a homeowner, you will want to verify that there are no obvious flaws. Peeling paint and rotten wood should be addressed. The gutters should not be overflowing with leaves and dangling from the home. The appraiser will assign a grade to the outside of your house. You'll want it to be a success. Little things like cleaning the driveway and clearing cobwebs around entrances may go a long way. Consider the presentation. Not every upgrade has to break the bank.
A house with too much personality may depreciate in value.
People may be insane when it comes to their houses. They create extremely tailored improvements rather than what appeals to the majority. Doing so may be a costly error. For example, if everyone else in the kitchen is using granite countertops and you decide to install a new Formica top, it will not go down well. Adding carpet to a formal dining room is also unappealing.
Some sellers are unaware that not every home renovation will increase the value of their house. Improvements may sometimes reduce the value of a property.
Your home's location is important.
There is a reason why real estate brokers continuously preach about location: it has a big impact on the value of our properties. Although there isn't much you can do about this one since you can't just pick up your house and relocate it to a better location, it is something to bear into account when determining the value of the property.
The crime rate, the closeness of schools, road upkeep, walkability, neighborhood amenities, and the accessibility of retailers all have an impact on value. Appraisers fine-tune value depending on location by adjusting their real estate comps from other properties that sold to the local areas.
Appraisers consider the home's square footage
The size of a house is another important aspect in determining its value. The overall square footage of available living space is important and surely helps to the value of your property. However, it is not only the number that they consider. They're also curious about how stuff is dispersed.
That is, if you have a bad floor design, it may reduce the value of your home. This is referred regarded as functional obsolescence by real estate appraisers. For instance, if you have to pass through one bedroom to go to another. This is an unappealing scenario that creates privacy concerns.
Open, functional floor layouts tend to increase the value of a property. When purchasing a property, it is important to consider factors that may make it more difficult to sell in the future.
The number of bedrooms has an impact on the appraised value.
Although it is partially dependent on location, the number of bedrooms will also be a consideration. A one- or two-bedroom property in a suburban community may not be particularly appealing since prospective purchasers are thinking about expanding into their houses to establish a family. This will not be achievable without an additional bedroom or two.
As a result, having too few bedrooms will instantly turn off many purchasers, and appraisers will take this into account. The quantity of bathrooms is also a consideration. The number of bedrooms and bathrooms will have a significant impact on adjusting value from one property to the next as appraisers fill out their appraisal reports.
It is important to consider the materials used to construct your home.
Appraisers prefer to focus greater attention on your home's foundation, appreciating modern foundation materials and processes much more than older foundations and their components. The kind and age of your roof, as well as the energy efficiency of your windows and doors, and other characteristics that make your house far more efficient, all contribute to these numbers.
Investing in new kitchens and bathrooms may significantly increase the value of your home. Appraisers recognize the significance of these features in our houses.
Ensure that you have the most up-to-date heating and cooling systems.
Wardrobe Space Is Important
Once upon a time, individuals just didn't have many things to keep, thus storage capacity didn't mean all that much in terms of a house evaluation price. However, as time passes, more and more of us accumulate clothing, shoes, purses, coats, and anything else we can cram into our closets.
As a result, customers are constantly looking for as much storage space as they can acquire. As a result, a property with a walk-in closet in the master bedroom may be considered much more valuable than one without. This is particularly true in more costly houses where a walk-in closet is a standard feature. Thais are having larger wardrobes than in the past. Keep this in mind when selling or remodeling your place.
Will the Appraiser's Skill Affect the Value?
Although you may like to believe otherwise, the truth is that appraising is a profession like any other, and being effective at it requires talent and experience to perform the best job possible. Appraisers are no exception. They, too, are human beings like you and me. They make errors.
Experienced appraisers may see factors that might increase the worth of your house that less experienced assessors may not. A senior appraiser may also have a superior eye for seeing factors that might reduce the worth of your house that rookie appraisers would miss.
Remember that real estate valuations are only one person's opinion. Unfortunately, if you have five evaluations done on your house, you will almost certainly get five different valuations.
Last Thoughts
A home appraisal is an important part of the great majority of all home transactions. As a buyer or seller, you must have a basic grasp of how they operate. Make sure the appraiser is registered with the Thailand appraiser association. Get an appraisal before you buy or sell your property in Thailand.
Note: Land office appraisals are usually only 25%-35% of the asking price in Thailand on land transactions. They are closer to real value when the property has a house at about 70-80% of actual value.
To Get an Appraisal contact the Thai Appraisal Association
---------------------------------------------------------------------------------------------
We have four properties right now on our blog that are undervalued properties based on appraisals and good for buyers in the current "buyer"s market.
1. Land In Chiang Rai Click here
2. Land In Surin, Thailand Click Here
3. Land In Doi Lo Chiang Mai
4. Condo in Patong Beach, Phuket
No comments:
Post a Comment