Published on 06/21/2020
When you decide to sell a property, many constraints emerge. Estimating the value of a property is an essential step in determining the right price. This estimate must take into account the different characteristics specific to the dwelling. This is the price per square meter. But the nature of the real estate market is also to be taken into account. As such, each property is unique and its valuation can be complicated.
Value estimation is mainly used by the owner to mark a price base when selling his property. The valuation of properties is done through comparisons, observations, documents and also calculations on the property. It should be noted that the property cannot have a higher value than those on the market, unless it has characteristics without equal.
Comparison is the classic method for valuing a property. The owner collects data on the sector where his property is located to compare them and get an idea of the local market. Thus, this method consists in making a comparison between his property and those put up for sale in his neighborhood by referring to local data. The owner can consult real estate ads, provided that the properties being compared are more or less similar (located on the same floor, same area or number of bedrooms, etc.).
In the age of the Internet, even the valuation of real estate is digitized. Indeed, several platforms are able to offer a sale price by evaluating the property online. These sites are based on different basic criteria. To make an online evaluation, the site requires the introduction of the characteristics of the house: living area, age of the building, location and price per square meter. These elements will be used to determine a range of the selling price that roughly agrees with the market.
When this technique is used, an estimate of a property's value is obtained by comparing the appraised property to recent sales of similar or comparable neighboring properties. The value of the subject property is directly linked to the selling prices of comparable properties. The objective is to estimate the market value of the property.
The first element to take into account is that the experts hired cannot ask for payment to make an estimate. Indeed, the Hoguet law requires that no payment should be made until the sale has been finalized. This means that the estimate service is offered free of charge.
Before establishing an estimate, the expert must evaluate the property offered for sale. It begins with the collection of data specific to the accommodation for sale: its location, current general condition, exterior and interior fittings and energy insulation, among others. Other property-specific characteristics can have an impact on the price, such as proximity to schools, shops, etc. The experts (this may be a real estate agency or a notary) study all the details to offer the best estimate of the sale price.
Of course, the role of the notary is to register real estate transactions. But he can also make an estimate of the value of a property. The notary knows the values of the real estate, insofar as he has access to the databases which bring together all the transactions carried out in several regions. For this purpose, he can easily determine the right price. However, the seller is required to pay fees for the notarial expertise.
There are different ways to value your property, each based on a number of pieces of information. However, it must be remembered that this is only an estimate, and therefore, it may give an overestimate or an underestimate of the property. In either case, the owner can complain that his property has not been assessed at its true value, or that he has not had offers because of an excessively high estimate.< /p>
Online valuation tools can only give a more or less exact estimate and not the true sale price. They are only very accurate when there are a certain number of sales in a specific geographical area to serve as a base.
It should also be noted that the selling price of a property is determined by the owner. So the final decision is up to him. Often the price of the property is set at a higher figure than the seller is willing to accept, to allow for some sort of negotiation. Even the price the owner is willing to accept does not necessarily accurately reflect the market value of the property.
Source: Photo Isaiah Bekkers/Unsplash
Parisearch is a real estate agency in Paris.
Connected 24 hours a day to the market and its network, it responds to all requests for research or sales of real estate in Paris and the Ile-de-France.
Its objective is to accompany its customers in the realization of their project of life by securing their step and by allowing them to reach rare goods (off-market) which will make their happiness and will answer perfectly their criteria.