Valuation: What does an estate agent look for?

As a property owner, you are no doubt concerned about how much your property is worth, regardless of whether you want to sell it or not. But how does an expert valuation work? And should this value be used for price negotiations?

Some owners are toying with the idea of selling their beloved home on their own. They think that they can determine a realistic market price on the basis of comparable properties for sale and thus start the sale well prepared. Some of you probably think that you don't need an estate agent for this project.

What does a broker do better?

An estate agent uses three established methods to determine the value of a property. The asset value, income value and comparative value methods have been doing a good job for decades. Depending on the type of property, one method or another is used to determine a valid value.

How a competent broker works

Once your home has been professionally valued using software, it is time to put it through its paces once again. The value-determining features such as location, furnishings and condition of the property must be weighted, as every property is known to be unique. Therefore, properties with similar characteristics such as location, year of construction and fittings may have a completely different price after many years due to the different state of preservation when they are sold.

Energy efficiency as a new sales argument

Since the climate crisis and rising energy costs, a new criterion is playing a significant role: the environmental friendliness of the building. These are rated on a scale from A-G. If a property receives a poor rating due to a lack of insulation in the walls, old windows without sufficient insulation and an uninsulated roof truss, this has an impact on demand and the price that can be achieved when selling.

Offer price as a result of the interplay between supply and demand

At the end of the day, only one thing counts: will this asking price generate enough demand for the property to be sold? If not, the home will become a slow seller, with prospective buyers secretly suspecting defects because the marketing period takes far too long.

An estate agent who has been working in the area for years knows his home. He knows what other properties are currently for sale, how they are priced and how the price of your property should be set in order to sell quickly and successfully. Taking into account the demand situation and the competitive situation, he will quote the appropriate asking price in order to achieve a satisfactory result for both parties after a successful negotiation.

Are you wondering which factors play a decisive role in the valuation or do you want to know how much your property is worth? Then get in touch with us! We will be happy to advise you!

Note

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

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

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