2018-10-12
All about real estate valuation
Assessing the value of a property is an essential step in the sale process. We explain the details of how it works.
In order to estimate the price of the property in question, many criteria must be taken into account, and it may be difficult for a single individual to find the right price. In order to help you accurately estimate your property and put it up for sale at the right price, the professionals at Barnes give you the advice you need to make the most accurate property valuation.
Evaluate the price of your property, the first step to sell your main or secondary residence
When selling a property, the estimation of the value of the property is an essential point. Indeed, the price fixed on the ad is an important element that can work against you if the estimate is not accurate. Whether for your primary or secondary residence, the resale price will generally not correspond to the purchase price and any work done. In the valuation of a property, many factors are taken into account and influence the selling price: economic, legal, physical, location...
Since buyers have the opportunity to compare several properties and have a clear idea of market prices, it is important to estimate their property at the right price. In order for both the buyer and seller to be satisfied in this transaction, a good valuation of their property beforehand is a necessary step. Thanks to fast and complete access to numerous sales offers and information on the economic situation, it is now easier to evaluate your property properly.
The most common estimation techniques
Based on data accessible to all, we can now distinguish three main techniques to evaluate the price of your primary or secondary residence:
- Based on the purchase price and the acquisition date: according to the economic situation and INSEE data on the evolution of prices on the market, the estimate of his house or apartment will be updated.
- Based on the average prices charged: from the sales made and recorded by the Notaries, an average market price will emerge and allow the value of the property to be adjusted.
- Based on the properties sold nearby: by taking an interest in the properties sold in the surrounding area and taking into account the particularities of the property you are selling.
To make the most accurate estimate, the professionals at our Barnes agency use the 3rd method. Based on the real estate transactions carried out in your area, we carry out a precise valuation opinion of the property you wish to sell. Thanks to this technique and the market knowledge of our professionals, we can ensure that your home is sold at the right price.
The steps of a good real estate valuation
The valuation of your property is the first thing to do in order to resell it. To carry out the most accurate real estate valuation, three main steps are necessary in order to take into account all the elements and variables involved in the price of your property.
1) Study of economic, physical and legal factors
Economic factors
Among the economic factors influencing the price of its property are:
- The economic situation: taking into account the number of sales, the borrowing rates, the demand in the sector, the employment pool.
- The interest of the property: the type of clientele according to the property sold, the attractiveness of the sector (economic, environmental...).
- Weighting criteria: indicators that take into account various criteria and influence the value of the property.
Physical factors
In the valuation of a property, physical factors are taken into account. These factors are composed of many criteria associated with the property in question and the environment in which it is located:
- Interior and exterior aspect: condition of the property, type of architecture, optimal layout....
- Environment: district, view, exhibition, neighbourhood....
- Insulation: compliance with energy standards, protection from noise pollution, comfort of the property...
- Maintenance: maintenance of the property's equipment and facade...
Legal factors
Legal criteria are important points to consider and require the expertise of a professional:
- Right to remain in the premises: respect the expiry date of the residential lease and the notice period.
- Servitudes: notifications of any servitudes (passage, view, subsoil, etc.).
- Land: information on the owner of the land on which the property is located (individual or HCL).
2) Comparative market study
The second step for the real estate valuation consists of a precise assessment of the current state of the real estate market. To do this, it is necessary to compare all the properties sold, for sale and unsold that are located in the same area as your property. This study of the real estate market in your area will provide you with important information to accurately determine the value of your property.
3) Study of the weighting criteria
Cited among the economic factors, the weighting criteria are percentage indicators that can increase or decrease the price per square meter of your home. Today, 42 weighting criteria are taken into account to accurately assess the value of a property. Among these criteria, we find in particular the environment of the property, the view, exposure... All these criteria have a percentage that will vary the final estimate of your property.
Where and by whom to have your property appraised?
If you wish to sell your main or secondary residence, an accurate and adjusted estimate is therefore an essential step. On the surface, this estimate may seem simple for an individual to make. Nevertheless, the number of criteria that are taken into account in the value of a property is much higher and requires expert advice. To be sure to estimate your property at the right price, the specialists of our agency Barnes Lyon are at your service to realize your personalized marketing plan.
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