Evaluating Property Conditions
Since you have toured the property you are interested in, you should know how it compares to the neighborhood and general area in which the property is located. Location is the single most important factor that influences property prices. A useful approach is to put the home in one of three categories - average, above average, or below average.
When evaluating a home’s condition, there are a number of things you should consider. Structural condition is most important- items such as foundation, footings, framing, and drainage. Then consider the age, adequacy, and condition of the heating and air conditioning, plumbing, electrical, roof, ventilation, and appliances. Pay special attention to kitchen cabinets, countertops, layout, bathroom fixtures, and flooring. Note the general condition, location, and number of light switches and receptacles. Is the main electrical panel protected by circuit breakers or fuses? Is the ampacity rating sufficient for modern useage? The front and back yards should be in reasonably good shape. Other factors which are important to consider include floorplan, room size, adequacy of closets/storage, and overall style and size of home in relation to other homes in the neighborhood. Be aware of any functional or locational drawbacks or concerns. These are just some of the many items which Buyer's Edge agents investigate, analyze, and report to our clients.
The missing ingredient will be information on the condition of the homes from your comparable sales list. Agents from Buyer's Edge Realty may have actually visited some of those homes and be able to provide key insights.
Home Improvements
Even when comparing exact model matches within a subdivision, you should note whether the previous owners have made any substantial improvements. Major improvements should be taken into account. Most important would be room additions or kitchen and bathroom remodelling. Are these legal additionals and improvements where necessary documents from the municipality have been issued? Other items, like expensive custom woodwork or swimming pools should be taken into account, too, but should be discounted. A pool that costs $50,000 to install does not normally add $50,000 in value to the home, but rather a fractional return of its cost in actual contribution to market value. Buyer's Edge Realty will give you guidance in this area and many others.
Next Topic - Considering Market Conditions
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