Valuation – how the professional does it

As the owner of one or more properties, you are undoubtedly interested in determining their current value, regardless of whether you intend to sell them or not. But how is a professional valuation carried out, and should this value be included in negotiations?

Some homeowners are considering selling their beloved home themselves. They believe that by comparing similar properties for sale, they can determine a realistic market price and thus be well-prepared for the sales process. In their view, a real estate agent is not necessary.

What makes a real estate agent different?

A real estate agent uses three established methods to determine the value of a property: the cost approach, the income approach, and the sales comparison approach. Depending on the type of property, one of these methods is better suited to determining an accurate value.

This is how a competent real estate agent proceeds

Following an initial valuation of your property using specialized software, a thorough inspection is conducted. Important factors such as location, features, and condition of the property are carefully evaluated, as each property is unique. Therefore, properties with similar characteristics, such as location, year of construction, and features, can achieve completely different prices due to varying states of repair.

Energy efficiency as a new selling point

In light of the climate crisis and rising energy costs, a building's environmental friendliness is playing an increasingly important role. It is rated on a scale from A to G. If a property receives a poor rating due to inadequate wall insulation, old windows without sufficient insulation, and an uninsulated roof structure, this impacts demand and the achievable selling price.

The asking price as a result of supply and demand

Ultimately, only one thing matters – will this asking price generate enough demand to make the sale possible? If not, the property could become a "white elephant," and potential buyers might suspect flaws because the marketing process is taking too long.

A real estate agent who has been working in the region for years knows the market well. They know which other properties are currently for sale, how to assess their price range, and how to determine the price of your property to ensure a successful and satisfactory sale for both buyer and seller. They take current demand and the competitive landscape into account to set the right asking price and negotiate effectively.

Would you like to know which key factors play a role in the valuation of your property? Then get in touch! We'd be happy to advise you!

Notice

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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