How much is my property worth?

Your new neighbors bought the house next door last year for €350,000? Surely you can ask for the same price then? Unfortunately, it's not that simple. Anyone who wants to sell for the best possible price can't do without a professional valuation.

Experts repeatedly observe the same scenarios on real estate portals: Private sellers list their property online at an inflated price, and it remains on the portal for months until the price is eventually reduced. But by then it's too late. Prospective buyers closely monitor the market, and a listing that languishes on the market for months before being lowered in price conveys one clear message: There's something wrong with the property.

The property is usually in excellent condition. The seller simply failed to have the price professionally determined. In such cases, most sellers tend to set the price too high. They are misled by the numerous media reports about rapidly rising property prices and often factor the emotional value the property holds for them into the pricing.

Many owners also use an online valuation tool to determine the price. This is a good way to get a first impression of the approximate value. However, you shouldn't rely on it completely, as the results are too imprecise. After all, individual characteristics of the property cannot be taken into account. What is the layout of the property? How high-quality are the tiles and flooring? Are there any significant noise sources in the immediate vicinity? Is there a bathtub? Does the bathroom have a window? And how long ago was the last renovation? A professional real estate agent will therefore only provide a valuation after a prior inspection of the property.

There are three recognized methods for professional property valuation: the comparative sales approach, the cost approach, and the income approach. The comparative sales approach is primarily used for land and condominiums where there is a sufficient number of comparable properties. The cost approach calculates the land value and the building value separately. The land value is determined using the comparative sales approach, while the building value is calculated by factoring in all material and fixture costs. This method is frequently used for single-family homes. The income approach, on the other hand, is primarily used for rented properties and commercial real estate. Here, the decisive factor is the potential income generated by the property.

The value determined at the end of the valuation process is the so-called real value. This is not necessarily the asking price. Depending on the property and the market situation, different pricing strategies are appropriate. In times of high demand, for example, a bidding process in which the price is deliberately set lower is a popular option.

Do you want to sell your property for the best price and rely on the expertise of a professional? Contact us now. We'd be happy to assist you.

Photos: © BrianAJackson / Depositphotos.com