If you have thought about selling your property, you may have thought about its price. That is why we want to explain a few important points to deal with at the moment of giving a right value to your property and we will also try to highlight a few mistakes to avoid when fixing it.
Which elements and characteristics of the real-estate help to fix a sale price?
The most important is to analyze the characteristics of the property that will help us to fix its value. We will have to consider the following points:
- The location of the house: The place and neighborhood where the property is located is one of the most important point for a buyer as are the services that may be found in the area: is it uptown, downtown, quiet neighborhood? Is there a wood nearby? Is it close to a school, to a supermarket? Of course, the real estate will not be valuated the same if it is located at 20m from the beach or 15 km far from it.
- Surface of the property: An usual mistake is to fix a price only regarding the number of rooms of the property. It is more important to consider the surface and square meters when comparing it with other estates of the market.
- Condition of conservation of the house: The state of the building is an important point to consider. It is more important than the year of construction, as the property could have been partially or totally upgraded. A reformed house is of course more valuable and it will be easier to sell it at a better price.
- How is the property distributed? The value may also raise regarding the organisation of the various spaces of the accomodation, its design and its comfort.
- Garage or parking place: it is another important point and add value when calculating the price.
- Plot’s surface: Especially if the real estate is a house, the surface of the plot and its design may be of advantage: ex: number of sqm? Has the plot several levels, steps?
- Other valuable equipments and services such as communal/private pool, garden, children area…
- Number of floors: Ground-floor houses or at least with one bedrooms/bathrooms on ground floor have a higher demand, especially for buyer who want to live in the house, so that these types of estates are better valuated.
- Block’s equipment: the more the better to fix a higher price, especially in the case of apartments…a reception, a communal pool, an elevator. You name it!
Mistakes to avoid when fixing the price of your house
Once you have defined all the characteristics of your house, the next step is to analyse the real estate market for other properties for sale. However, many sellers make mistakes at this point. Below, we analyse the mistakes you should avoid when analysing other properties for sale on the market:
- Relying on prices of properties published on real estate portals. Many sellers use real estate portals as a reference for the value of their property. However, these properties do not reflect the price at which your home will be sold as they are often overvalued and the price in the advertisement is never the price at which the property will end up selling.
- Based on the money I need to buy another house. Many sellers decide to sell their property in order to buy another property in a different area or with different characteristics. A common mistake is to set the price based on the money I need to buy my next property, instead of setting the price based on the real value of the property you are selling.
- Based on the price at which I bought my house. The real estate market is constantly moving and when you decide to sell your house, you should look at the market price at the time. This does not mean that you should sell your house at a low price, nor at a high price, simply at the market price. Don't make the mistake of ignoring the fluctuation of the market and just look at the price at which you bought the house a few years ago because the market is in constant movement.
Who can help me fix a price to my house?
There are several ways to establish the selling price for my house, such as :
- A real estate valuation, which can be carried out by a duly accredited real estate agent who knows perfectly well the prices at which properties are being sold in that area.
- An appraisal, which is carried out by a qualified valuer, who is usually used by banks to grant mortgage loans.
In both cases it is an estimate of the selling price of the house that is made taking into account the dynamics of the market, the location and the characteristics of the property.
If you want to know more about the differences between a real estate valuation and an appraisal, we recommend you read the following article "What is the difference between an appraisal and a real estate valuation?".
As you can see, setting a market price for your property is no easy task, but we have offered you several tips on how to achieve it. At Unico Costa Brava, we have a professional team that can help you. I hope you find these tips helpful.
See you soon! We will continue to inform you of more elements that you need to know to sell your home. Follow us and keep an eye out for the following publications that will surely be of interest to you.