To sell or know the value of your property, it is essential to estimate it correctly. If you overvalue it, you will struggle to profit from it and if you undervalue it, it could mean less income for you or a depreciation of your property. It is then necessary to properly estimate your home to position yourself well on the local market and sell at a fair price when you have decided. Here are some suggestions that could help you estimate your property.
Comparison and capitalization
Comparison is the method favored by the tax administration. The method by comparison consists in determining the value of the property by comparing it to other properties of a similar nature and recently sold in the local market.
This method can, with the knowledge of prices, allow you to estimate your home according to the reality of the real estate market. In this method, the difficulty for the estimate consists in choosing sales of goods and services of a similar nature, taking into account the geographical sector in question and choosing transactions whose characteristics are similar to the good you want to value.
Apart from the comparison, you can also use the capitalization method to estimate your property. To do this, you must determine the market value of your home by applying a yield or capitalization coefficient to the income that the property brings to its owner.
However, this coefficient must be well chosen. Let’s do a little illustration with the following calculation: Property value = annual rent X 100 / capitalization rate. For example, for a property which brings in €17,500 in rent each year and which has an estimated capitalization rate of 5.5%, the market value of the accommodation will then be calculated as follows: €17,500 x (100 /5.5) = €318,182 which corresponds to the market value of this property. For recent buildings with free rent, the capitalization rate is around 4 to 6%.
Read also: Valuation of a property: how to proceed?
Real estate expertise
Another method to estimate the value of your property is to use the services of a real estate expert.
The real estate expert who has had a multidisciplinary training (building, town planning, taxation, etc.) has a job that consists of calculating the sale or rental price of a property by taking into account all the elements that can determine the value of this property. . He will also be responsible for carrying out the necessary verifications and will assume all responsibility in the event of tax litigation.
Apart from the real estate expert, you can also call on a real estate agency. Many owners choose this solution because it is free and accepted by financial institutions, notaries and the tax authorities. The rules governing real estate agencies are very strict but they remain an effective way to estimate the price of a property. A real estate agency is also able to provide a certificate of lucrative value to better facilitate a future real estate transaction.
Read also: Estimate your property online: the advantages
Our recommendation: estimate your house on very specific criteria
As much to say it right away, if you want to be able to be sure and certain of being able to estimate your house or your apartment by being as precise as possible, nothing should be left to chance! Thus, as you will see on this page which allows you to estimate your house by putting yourself in the place of the potential buyer, this can sometimes give rise to quite interesting situations. Indeed, with certain criteria that can sometimes be underestimated, and others that one can take into account for a reason that is not justified as an owner, you will be surprised to see the price differences that it may cause. Thus, if you want to be able to be sure and certain ofestimate your househere are some important criteria that should never be overlooked, otherwise you could have difficulty selling your property:
To begin with, even if it is not the main criterion, it is important to take into account the different outdoor spaces of your house or apartment. Indeed, with a swimming pool around your house, you will be able to greatly increase its value!
The location of your house should not be taken lightly as part of your estimate: you should not base yourself on an estimate at the level of a region or even a department, but at a local level such as a city or even a neighborhood.
Finally, as you can imagine, the surface of your house or your apartment is very important in the estimate. So to speak, we can even say that this is the main criterion that you cannot miss in the context of a serious real estate valuation.