PropertyWise reports that the Spanish property market is showing signs of health as inquiries and inspections from possible buyers are increasing. True enough, here at Golden Mile Group , we have been receiving an overwhelming response even in the start of the summer not only from buyers but also from sellers all around Spain. However, most people, especially first time buyers do not have a clue on their property’s value and sometimes this becomes a big issue especially when different agents give out different price evaluations.
To help you with this dilemma, our Director, Felipe Urrea de Caldas has written some tips to determine how much you should be able to sell your property and what are the different variables to be considered in coming up with a realistic, sellable price range.
What is my Property Worth?
Determining your property’s value is based on a whole lot of variables, what price your neighbor got may not be an adequate measure of what you should expect – you might get more than what they did or you might get less.
To determine how much your property is worth, you must take into account all its important features, including:
- Location of the property in relation to amenities considered desirable by potential buyers, e.g. schools, transport, work, beach, river, views, supermarkets, pharmacy, etc.
- The size of both the house and the block of land that it is built upon,
- The age of the building,
- The condition of the building,
Of less importance, but still a factor in determining value are the ‘fixtures and fittings’ that a property has e.g.
- Swimming pools,
- Heating, air conditioning, ceiling fans,
- Burglar alarms,
- Floor coverings,
- Light fittings, etc.
The next step is to find homes in your area with features similar to yours and check how much they have sold for. Recent sales of similar properties are a great source of information and what real estate agents rely on when they appraise properties as well.
Looking in real estate agents’ windows, or searching for property that is currently for sale on the internet will give you a good indication of how much other home owners are asking for their properties in your area. On the other hand, remember these prices may not accurately reflect the price for which the homes are eventually sold.
Changes in the state of the economy, interest rates and property market sentiment will also affect the value of your home.
The two most important variables that will have a significant impact on the price you will be able to sell your property for are these:
- How many other properties similar to yours are also for sale?
- How many buyers are looking to purchase similar types of property to yours?
I know it sounds a little simplistic but when it comes down to it, that’s the truth – simple supply and demand. The fewer properties there are for sale the less choice a buyer has and the less scope they have to negotiate on price. The fewer buyers there are, the more choice they have and the more scope they have to negotiate on price.
Have you got any questions on home values and property evaluation? Email us at firstname.lastname@example.org