Withfor advice: How do I know how much my flat or house is worth?

Withfor

16 December 2020 |

How can I calculate the value of a house/flat?

The most common doubt of most of our clients when it comes to selling is usually thinking about how much their home costs. Putting an appropriate price makes the difference, but it is a process that is not done at random, since many factors influence it.

We, as professionals in the real estate sector, take these aspects into account when valuing a property:

1. Detailed analysis of the property:
To be able to give a price of a property in the most accurate way, we start with a comparative study using different specialized programs that include algorithms that take into account the following parameters:

  • The location (neighbourhood).
  • The built area.
  • Whether there is a terrace and its surface area.
  • The number of rooms.
  • The number of bathrooms.
  • The height of the floor.
  • The orientation, lighting.
  • Whether it is an interior or exterior floor.
  • The conservation (not only of the floor but also of the building and common areas).
  • Whether or not it has a lift.
  • Whether it has a storage room or garage.
  • Age (years).
  • Reforms or future spills.

In this type of procedure, samples are taken of similar properties within the same neighbourhood, and both the prices of the properties currently advertised and those sold in the course of the last two years are analysed (actual data from the Land Registry).

As a property owner, since you do not have access to this data, you can carry out an approximate study by studying the properties advertised on the property portals using the comparative criteria previously detailed.

There are items that cannot 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
When defining the price. In spite of 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 play. For this reason, it is important to bear in mind that the market situation fluctuates and is most likely to be 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 the professionals in the sector.

Thus, objective tools from third parties, such as a valuation, an appraisal and a land registry, are the elements that help a home to have a real market value.

Valuation and appraisal. What are these terms?

Although they may seem synonymous, valuation and appraisal are different things (even though they both aim to give an approximate amount in order to initiate an offer). Let’s see what each one is:

The valuation of a home

It refers to the price that is most in line with market reality and can be carried out by a real estate agent. This is one of the services we offer here at Withfor and in fact it was one of those that helped our client, Miguel Rodriguez, to resolve the doubts about the sale of his property.

In order to make the valuation of a property, at Withfor we use different specialised tools, as explained above, and we use our experience in the sector to define it.

What is the valuation of a property and how much does it cost?

The valuation is a responsibility and a guarantee that the experts guarantee the characteristics of the property. It can only be carried out by an appraiser approved by the Bank of Spain.

Appraisals work as regulatory mechanisms and make property 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 on property appraisal.

Where can you find out the cadastral value of a property?

Returning to Miguel’s case, he too was unaware of what is in the public domain. In Spain, all property owners must register their properties with the Ministry of Finance and Public Function. This is what is known as the Registro de Catastro and, in short, it works as a kind of DNI for the property.

It is a compulsory and free document that contains key information about the property. It ranges from the value of the land used for construction to a series of specific features of each Autonomous Community. It is an indispensable document for calculating taxes when selling a home.

However, in order to know the value of the home by cadastral reference, you can consult the Property Tax (IBI) receipt. Similarly, you can find out by making a phone call to the cadastral offices or by going to their electronic headquarters 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 fixes to a property taking into account multiple elements that characterize it. This valuation is made by a qualified civil servant or technician.

It is not a fixed amount, as it depends on variables, which can be modified annually, so the price of the property can change.

The cadastral value provides 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 should not be higher than the market price.

Successfully valuing a property with 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 do not have the necessary help. If, like Miguel, you need real estate advice in Barcelona, remember that you can count on us for everything you need.

We offer our valuation service to get to know your property in depth, your needs and expectations, and thus provide the most accurate valuation of your property. We will be very happy to help you.

 

 

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