It is often difficult to estimate the price of an inherited property. Especially when it comes to the parental home, to which many valuable memories are attached, people often overestimate. But if you set the price too high, you may not find a buyer. And if you set it too low, you will miss out on money. Or can setting a slightly lower price bring advantages after all?
Just as a price that is too high drives away potential buyers, a lower price creates massively increased demand. More buyers give the seller room for negotiation. For example, a bidding process can be organised. This often generates higher prices than are usual on the market. Once you have fallen in love with the house or flat, you are reluctant to lose it to other bidders. This pays off for the seller.
However, it is advisable to consult a property expert for this. This is because setting the right price requires expert knowledge, knowledge of the current situation on the property market and a great deal of experience. Many local market factors must be taken into account in order to determine the optimum entry price together with the owner. This is only possible with an expert who deals with local price dynamics on a daily basis.
The valuation of a property is determined by various criteria. The most important of these are: Location, plot size, proportion of common areas, living space, type of property, standard of fittings, year of construction, renovations and structural changes carried out, market situation and special features.
There are three different methods for determining the value of a property, depending on the type of property: the comparative value method, the asset value method and the capitalised earnings value method. The comparative value method is generally used for undeveloped land and condominiums, for which there are usually a number of comparable properties. When selling houses for which there are no comparable properties, the valuation is carried out using the asset value method. The income capitalisation approach is used for multi-family houses and commercial properties where the focus is on yield rather than owner-occupation.
Online valuations can also be used to get an initial idea of what the property is worth. Average values and price ranges can be determined here in just a few minutes. But be careful: the average values can deviate considerably from the actual value of your own property. This is because it is subjective whether a property is of high quality or "normal". For this reason, there is no substitute for an on-site valuation of the property by a local market expert.
Would you like to know how much your property is worth? Please contact us. We will be happy to value your property.
Photo: © AndreyPopov
