How to identify the value of your home

Someone who wants to sell his house can not sell it until and unless he knows how much the house is worth. He has to identify the value of his house so that he can get an idea about how much he is likely to get according to the condition of the market. The process through which the value of the house or the opinion of the value of the house can be obtained is known as property valuation or real estate valuation. The value which is usually determined is the market value of the house, that is, the price the house would fetch when it is sold in the market.

One of the reasons why the value of the house is determined is because the nature of real estate is heterogeneous. This means that every property is different for one or more reasons from another property.

The most important factor which determines the value of the house is the location at which it is situated. Since there is no price mechanism based on the market for setting the price, an expert is required to value or appraise the house or real estate. The expert who values the house is a certified or a licensed appraiser. He is known as a property valuer, or a valuation surveyor.

The value of a house can be according to different types. It can be the value in use, the market value, liquidation value, investment value, or insurable value.