Selling up always starts with one question: how much is my property worth? To accurately establish the property value, you need specialist knowledge of the market, an exact floor area calculation and industry expertise regarding various factors that may positively or negatively affect the price.
If you’re selling a property, you’d ideally like to find a buyer as quickly as possible while securing the best price. If the asking price is too high, this puts off prospective buyers. Finding a suitable buyer can take months or even years. If the price is too low, this can attract more prospective buyers to the property – but there’s a risk it will sell for less than its value. Both scenarios are undesirable and may really dampen your delight at selling up.
Different factors play a role in setting the right market price. Using professional methods to calculate the property value allows you to work out the property’s market price and put it up for sale with the right asking price.
Calculating the exact floor area is the key to setting the right price in line with the market. But this involves so much more than just measuring every room. That’s why it’s always worth consulting an experienced real estate agent. As well as working out the exact floor area, they can also consider other factors that impact the calculation of the asking price.
In most cases, the property value is calculated using the hedonic measurement method. Banks also use hedonic valuation tools to calculate the price of a home and take this as a basis for potential financing. The hedonic method is based on statistical benchmarks on the market. Various factors such as the property’s location, proximity to schools and public transport, layout size, usable floor area and number of rooms are also taken into account. All of these individual factors are measured against other properties being traded on the market in order to estimate the price using a statistical calculation.
In contrast to hedonic valuation, the real value method can also be used to calculate the asking price. This method involves a real estate expert visiting the property in person. They will also draw on documentation such as the land register or cadastre. The fabric of the building, energy efficiency and other factors also affect the estimate. Finally, the real estate agent will document their assessment in a clear written statement.
All Engel & Völkers real estate agents conduct valuations using the real value and hedonic measurement methods. You can also benefit from our team’s decades of experience and in-depth specialist knowledge. Our knowledge – your profit! We’re happy to help you sell your property. Call us to arrange an appointment with no obligations. We look forward to hearing from you!