In a context of great uncertainty like the current one, many property owners wonder how they can carry out a fair and competitive property valuation. The market situation has changed considerably, and with it, the criteria we used to employ to evaluate properties. Bank appraisals, which previously served as a reference, have become merely a tool to determine whether the potential buyer can access a mortgage or not. However, this does not represent the real value of properties, especially those acquired between late 2007 and today.
Faced with this reality, it is normal for property owners to ask: where should I start when valuing my property? In this article, we will provide you with several tips that, moving away from conventional criteria, will offer you a more practical and realistic approach to set an appropriate price in today’s competitive market.
Subjectivity and distinguishing elements
It is common to hear property owners say that “my apartment has something special.” While it is logical to have emotional attachment to our properties, the truth is that, from a commercial perspective, these types of claims no longer carry the weight they once did. Nowadays, the market is saturated with properties, and it is likely that there are several properties in your area offering similar characteristics.
What is really considered different? Penthouses, large terraces, and stunning views continue to be clear distinguishing factors that can add value to a property. So does the decoration or presentation of the property, but this factor must be managed carefully. Overestimating the value of your property based on aesthetics could alienate potential buyers, especially those interested in the location or layout. However, if there are properties in your same building in worse condition—for example, without renovations or on lower floors—it might make sense to match the price of your competitors to attract more buyers.
Key tips for an accurate property valuation
When valuing your property, it is essential to analyze the competition in your area. We recommend answering the following questions to gain a clear understanding of the market and set a competitive price:
- How many similar properties are for sale in the same area?
Analyzing direct competition is crucial. An excess of similar properties may indicate that you need to adjust your price to attract more attention. - How long have these properties been on the market?
If properties for sale have been on the market for a long time without buyers, it is likely that the prices are overestimated. Adjusting your initial price could be key to speeding up the sale. - How have the prices of these properties evolved?
Reviewing whether they have undergone price reductions and to what extent will help you identify a trend that could influence the valuation of your property. - Is the property original or renovated?
Renovations can add value, but not always to the extent property owners expect. Compare your property with others in terms of condition and type of renovations to better understand the impact on the price. - What negotiation margin can you afford?
Depending on your urgency to sell, you can decide how much room you have to reduce the price in negotiations and within what timeframe you need to find a buyer. - Are there bank or developer properties in the area?
Bank or developer properties can influence the market price by offering more attractive financing conditions. It is important to consider this factor when setting the price.
Additional factors to consider
In addition to the points mentioned, there are other usual factors that must be considered when valuing a property, such as the exact location of the property, its size, orientation, and the services available in the area. It is significant to remember that these criteria are considered starting points, but are not determinative by themselves.
Why is Atipika the right choice?
At Atipika, we have a specialized team in appraisals that can help you carry out a more precise property valuation adjusted to the current market. For any inquiries or personalized valuation, do not hesitate to contact us.
We have various tools that, together with our 25 years of market experience, allow us to provide reliable advice on what the most appropriate price is.
A proper property valuation without a marketing strategy can raise doubts about the results obtained. Lacking the right tools will prevent the property from selling and force price adjustments, even if the price is not the problem. Atipika offers all its clients a global marketing strategy with the best tools on the market that ensures success and the best possible price.
Carrying out a property valuation in a volatile market requires thorough analysis of the competition and a realistic approach. It is essential to avoid subjective valuations and focus on objective data that reflect market conditions. If you have any doubts or need more information on how to value your property, do not hesitate to contact our Atipika experts, who will be happy to assist you.
FAQs
1. What does a volatile market mean?
A volatile market is one in which prices fluctuate rapidly due to economic, political, or supply and demand factors.
2. Why are bank appraisals no longer reliable?
Bank appraisals are primarily focused on verifying whether the buyer can access a mortgage, but they do not necessarily reflect the real market value of the property.
3. How can I tell if my property is overvalued?
Compare your property to similar properties in your area. If other properties have been on the market for a long time or have undergone price reductions, it may be a sign that your property is overvalued.
4. Is it advisable to lower the price of my property?
It depends on various factors, such as how long you can afford to wait to sell and the market conditions. Analyzing the competition and being open to negotiation may help you sell faster.
