The estimation of a property is a crucial step in the sale of a property. The seller does not have the interest to overstate it or to underestimate it. To fix the “fair price”, it is necessary to evaluate a certain number of points objectively.
On the one hand, the buyer wants to make “a good deal”. On the other, the owner wants to sell at the “best price”. But what is a good price?
For the seller,
It is often above the market price. The owner, who has an emotional relationship with his home, tends to lose objectivity. It is all the more biased that he generally wishes to realize a surplus-value.
For the buyer,
- The “best price” will, conversely, be below-market rates. He will tend to scrutinize the slightest flaws to better negotiate the purchase price.
- The influence of the environment in the estimation of a property
- In the same city, we can observe differences between neighborhoods but also from one street to another.
- The environment, the attractiveness of the area, the notoriety of the district, the presence of local shops, good schools, the feeling of security, the prospects of development of the territory …
- All these elements influence the fixing of the selling price and will, therefore, be taken into account in the estimation of your property.
Some defects are expensive
The characteristics of the housing and the building also influence the selling price.
To estimate a property, assess the strengths and weaknesses of the property to determine a price per square meter.
In general, we start from the average price in the building, which is weighted according to the assets of the house (we talk about premium) and its defects (we then apply a discount). Number of real estate attorney austin tx is available.
Once the analysis is complete, we obtain an average price per square meter that is multiplied by the total area of the dwelling.
Real estate agents have assessment tools that allow them to work objectively.
For example, a view of a monument, the sea or a mountain, will increase the price per square meter from 5 to 20%.
For a pleasant orientation (south-east or south-west), count 3 to 5% more than for a housing exposed full north and finally, for a superb terrace, the valorization can reach up to 15% of the 2 in l estimate of your property.
Conversely, a ground floor will sell up to 25% cheaper than similar accommodation in the same building but located at 4 on the floor. Count 30% discount if the accommodation must be renovated in its entirety and up to 10% if it is poorly arranged (rooms in a row for example) or poorly distributed (a large entrance followed by a small lounge).