How much is my house worth?, what is an appraisal and what is it for?, Property valuation & appraisal is the same?… These are some of the questions that Miguel Rodríguez, one of our clients who put his home up for sale, had. If like him you want to know the value of your home, this article will interest you.
How can I calculate the value of a house/flat?
The most common doubt of most of our clients when selling is usually to think about how much their home costs. And it is that putting an adequate price makes the difference, but it is a process that is not done randomly, since many factors influence.
We, as professionals in the real estate sector, take into account these following aspects when valuing a property:
1. Detailed analysis of the property:
In order to give a price of a Property Valuations Adelaide home in the most accurate way, we start from a comparative study using different specialized programs that include algorithms that take into account the following parameters:
- The location (neighborhood).
- The constructed area.
- If there is a terrace and its terrace surface.
- The number of rooms.
- The number of bathrooms.
- The height of the floor.
- Orientation, lighting.
- Whether it is an interior or exterior floor.
- The conservation (not only of the floor but of the building and common areas).
- Whether or not you have an elevator.
- If you have a storage room or garage.
- Age (years).
- Reforms or future spills.
In this type of procedure, samples are taken from similar homes within the same neighborhood, and both the prices of the goods currently advertised and those sold over the course of the last two years are analyzed (real data from the Land Registry).
As an owner, not having access to this data, an approximate study can be carried out studying the homes advertised in the real estate portals using the previously detailed comparative criteria.
There are items that can not be modified, however, any improvement that can be made to a flat is valid and can be taken into account so that the price increases. For example, if an investment has been made to improve lighting and ventilation, etc.
2. Objectivity and realism
At the time of defining the price. Despite studying the market and using comparisons, it is evident and perfectly understandable that the sentimental or emotional value we give to our “home” comes into action. For this reason, it is important to keep in mind that the market situation fluctuates and is most likely different at the time of selling our property than when we buy it, hence the importance of having a more objective look and listening to the arguments of professionals in the sector.
Thus, objective third-party tools such as, for example, a Property valuation, an appraisal and a cadastral registry are the elements that help a home to have a real market value.
Property valuation and appraisal. What are these terms?
Although they may seem synonymous, Property valuation and appraisal are different things (although both aim to give an approximate amount to be able to start an offer). Let’s see what each one is:
The Property valuation of a home
It refers to the price most adjusted to the market reality and can be made by a real estate agent. This is one of the services we offer here at Withfor and that, in fact, was one of those that helped our client, Miguel Rodríguez, to solve the doubts about the sale of his property.
To make the Property valuation of a home, at With for we contrast with different specialized tools, as explained above, and we rely on our experience of the sector to define it.
What is a home appraisal and how much does it cost?
However, the case of the appraisal is a responsibility and a guarantee that the experts endorse the characteristics of the property. It can be done exclusively by an appraiser approved by the Bank of Spain.
Appraisals function as regulatory mechanisms and make real estate transactions more transparent and objective. It is true that there are means for free online appraisal, but for your peace of mind, we recommend you read this information about appraising a home.
Where can you know what is the cadastral value of a home?
Going back to Miguel’s case, he also did not know what is in the public domain. In Spain, all property owners must register them with the Ministry of Finance and Public Function. This is what is known as the Cadastre Registry and, in short, it works as a kind of DNI of the property.
It is a mandatory and free document that contains key information about the property. It ranges from the value of the land of the construction, to a series of particularities of each Autonomous Community. It is an indispensable document to calculate taxes when selling a home.
Now, in order to know the value of the house by cadastral reference, you can consult the receipt of the Real Estate Tax (IBI). In the same way, it can be found out by means of a telephone call to the cadastre offices or by going to their electronic headquarters via online.
But with our advice, it is one less procedure to worry about.
And what is the cadastral value?
As for the cadastral value, it is an amount that the Public Administration sets to a property taking into account multiple elements that characterize it. This assessment is made by a qualified official or technician.
It is not a fixed amount, since depending on variables, these can be modified annually, so the price of the property can change.
The cadastral value yields a lot of information to negotiate the price of a property. It is not the final price or the market value, however, the cadastral value must not be higher than the market price.
Valuing a home successfully by the hand of experts
As we have seen with Miguel’s case, there are certainly a number of documents, information and tips for selling a flat.
These tasks can become overwhelming if you don’t have the help you need. If, like Miguel, you need real estate advice, remember that you can count on us for everything you need.
We offer our Property valuation service to know in depth your property, your needs and expectations, and thus, offer the most accurate property valuation. We will be very happy to help you.