Real estate valuation: from analysis to offer
Learn how to properly appraise a property, a delicate process that requires precision and expertise.
Real estate appraisal is a crucial process in the real estate market. It requires in-depth analysis and detailed knowledge of the field.
We must consider that such valuations without the assistance of an expert expose the side to some very common risks that undermine their validity, primarily the affective value that the owner attaches to his or her property as well as the commitment and expenses, perhaps even significant ones, that he or she has put into maintaining it. These are all understandable factors, but in proper market evaluation they do not affect.
In this article we will explore the different steps involved in property valuation and understand together how it actually happens.
Property Analysis
Before determining the value of a property, it is essential to conduct a detailed analysis of the property itself. This phase involves a number of key steps:
Physical Inspection
An experienced appraiser begins the analysis with athorough inspection of the property. This includes an assessment of the state of maintenance, the presence of any structural damage or construction problems as well as all those details that may lend uniqueness and appeal to a buyer.
Document Search
Documentation of ownership is essential. This includes floor plans, deed, technical report andEPA. A meticulous and professional appraiser pays special attention to this stage so that the buyer does not encounter unpleasant surprises.
Context Analysis
It is also important to consider the context in which the property is located. This includes factors such as geographic location, accessibility to services, proximity to public transportation, but also less immediate and obvious elements such as the prospects for future development in the area. A factor, the latter, that an experienced appraiser, often unlike the private appraiser, knows well.
Evaluation of the Buy-sell
Once the property analysis is completed, the professional proceeds with the valuation of the buy-sell. This phase involves the analysis of market data and the application of approved valuation methods.
Methods of Evaluation
Today we will focus on the methods of Comparative Value and Market Trend.
Comparative value
The comparative value method. It is based on analysis of recent sales of similar properties in the same geographic area. This method assumes that similar properties with similar characteristics will have similar values in the market. The appraiser looks for transactions involving properties with similar size, layout, state of maintenance, and location to the one being appraised. Through this detailed analysis, an accurate target price for the property in question can be determined. However, it is important to keep in mind that this method requires a solid understanding of the local market and an accurate assessment of differences between properties.
Market Trends
This approach involves analyzing the current dynamics of the housing market in the area in question. Factors such assupply and demand, price fluctuations, and economic and demographic influences are considered. Market trends provide an important context for determining the value of a property, as they allow us to assess how external factors may influence the price. This method is particularly useful when dealing with properties that are destined to be sold in the near future, allowing owners to make informed decisions about the best time to put their property up for sale.
Conclusions
Real estate appraisal is an art that requires expertise, precision and a deep understanding of the market. Relying on certified professionals is critical to obtaining an accurate and reliable assessment. If you need an appraisal of your property, do not hesitate to contact us, our expert appraiser Diego Candalia, who specializes in the field with SDA Bocconi, will be your ally in giving a correct valuation of your property so that you can market it effectively and quickly.
