Valuing a property: These are the aspects you need to consider

Deciding to sell your property is no easy task. However, once you made the leap, there are various aspects you need to have under control to ensure the success of the transaction. The first key point? You guessed it! Valuing your property.

There are multiple factors that influence the value of a property. Some characteristics carry more weight  than others when determining the final price. That is why we created a definitive guide with everything you must know about property valuation.

What does it mean valuing a property?

The valuation is primarily used to determine the selling price of the property. This process is not official, nor does it have legal validity, and it can be carried out by real estate agents or through applications.

However, when we talk about an appraisal, we refer to the procedure mainly used to secure mortgages. This process follows the regulations of Order ECO 805/2003, requires the intervention of a technical architect and must comply with standardized criteria.

Both methods determine the value of a property, but they pursue different objectives.

What aspects to take into account when valuing a property?

1. The location

The location of the property is one of the crucial factors when determining its value. It is well known that in both cities and towns, there are areas where the prices are higher, such as urban centers compared to peripheral neighborhoods or industrial areas, which typically have a lower value.

2. Energy efficiency

The energy rating of the property can also play an important role, as high energy efficiency is currently in high demand and it can increase the value of the property.

3. Condition of conservation

Factors such as deficiencies, the maintenance condition by the previous owners, or the need for renovations can also influence the final price.

4. Size and distribution

Generally, a larger property has a higher price than a smaller one with similar features. Additionally, the distribution of the space is important, as a poor layout can reduce the usability of the space and negatively affect its value.

5. Construction characteristics

The materials and quality of the construction directly impact the value of the property. High-quality materials and good facilities offer greater security and less risk of conservation and maintenance issues. This also applies to common areas of the building, if applicable.

6. State of the real estate market conditions

Property features are essential to determine its value, but the overall state of the economy also significantly influences the prices of a home.

7. Surrounding and nearby properties

The condition of neighboring homes is also important. If nearby homes are in poor condition, the home will likely be less attractive and its value will decrease.

Additionally, the supply of similar properties affects the price. A high availability of similar properties decreases the value, while limited supply increases it.

Why conduct a professional valuation before selling a property?

Conducting an accurate valuation of a property is one of the best decisions you can make because it:

1. Speeds up the process
2. Strengthens negotiations
3. Maximizes the selling price
4. Prevents legal disputes
5. Enhances competitiveness in the real estate market

Sell your property with KM2 Real Estate Services

Would you like to get an idea of the selling price of your property? We invite you to discover its current value for free and in less than two minutes with our online home valuator. 

We are already prepared to fulfill your next real estate goal. The team of commercial advisors at our real estate agencies in Barcelona and Madrid will not stop until your property is sold.

We are waiting for you!