Introduction
In the current economical situation, with companies declaring bankruptcies and with people remaining without a job all the time, the real estate market also had to suffer a lot. The fluctuation prices of a home cost are huge, and it is sometimes impossible to determine the real value of a house. In fact, establishing the real home cost is the most important aspect of a transaction. Usually, the support of a professional evaluator is needed, especially if you are taking a banking credit to buy the respective home.
Step 1
Generally, the evaluators of the home cost will establish the price of a home on the base of the selling price of other resembling real estates in the same area. For example, if several resembling homes were traded in the same block of flats, for several prices, the home cost will be the average cost of those properties.
Step 2
However, the respective home cost must also be approved by the bank. In any case, there is no possibility for you to sell or buy a home with a credit without establishing the home cost first.
Step 3
However, considering the current conditions on the market, the bank will consider the smallest home cost as the sum you are entitled for a credit. Considering the small number of transaction made during the latest years, it seems like this price is also hard to establish.
Step 4
If you have a problem with establishing the home cost, in the lack of some solid real estate transactions, it is important to consider the replacement indices. In any case, the price of a home could never be smaller than the construction cost.
Step 5
However, those situations happen, especially if we are talking about some transactions that are made between relatives and friends, but also in the cases of foreclosed real estates. Anyway, considering the current financial situation, the banks will always consider the smallest price as the base of calculating the sun the client is entitled to take.
Tips
The evaluators will also consider the home cost on the base of the official charts and calculation methods put at their disposal by the regulating authorities. Of course, the profit of the companies involved, such as the real estate agency must also be considered. In other words, when the client takes a mortgage credit from a bank to buy a home, the total sum will be composed of the smallest home cost evaluated, the profit of the real estate agency and the legal taxes of the transaction. It is normal, as long as all the costs must be covered from the credit.
Sources and Citations
In any case, the home cost can’t be evaluated considering the prices requested by the owners of the real estates, as those prices are far away from the actual prices of the transactions. If you want to have an image about the real home cost, you should know that the majority of transactions are made at 90% of the price initially requested by the buyer and this is usually the official cost of the transaction.
