ORDER A PROFESSIONAL property valuation following the Standard Rules of tThe International Valuation Standards Draft set by the International Valuations Standard’s Council and the European Valuation Standards written by the European Groupe of Valuer’s Association Read More
WHEN ORDERING A PROFESSIONAL PROPERTY VALUATION?
– When you want to BUY a property and want to make a FAIR offer
– When you SELL the property and want to sell it quickly adn the RIGHT price
– If you are DIVORCING, and need to state the value of the property you share with your spous/e
– If you want to DONATE your property to someone
– For CURIOSITY
– If you have inheritaged a property and need to sell it to divide the benefit between the heirs
COMMON THINKING ERRORS ONWERS MAKE
“I put a higher price, I am not in a hurry to sell”
It will be useless to set a price of 1.000.000€ for a house that is worth only 500.000€, because unfortunately none would pay it; YOU WOULD BE WAISTING YOUR TIME
” My house has 300m² so if the price per m² 8.000€ my house is worth 2.400.000€”
Price per Are or per m² diminishes as they go bigger. That is why small apartments are proportionally more expensive that bigger ones. in the same building an apartment for 60m² will probably cost around 450.000€, which is 7.500€/m² but an apartment of 150m2 will cost 950.000€ which makes a price per m² of 6.300€
” I know the price is high but someone will pay for it”
Mmmm, thinking that buyers are stupid is not a very good starting point for selling
” Price is not negotiable”
Clients love to negotiate. If they negotiate, they thing they are doing a good deal. If you impede this, client would probably develop a bad feeling against you and this will probably block the transaction.
WHAT IS THE PROCEDURE FOR ORDERING A PROPERTY VALUATION
The client has to order the Property Valuation after having aknowledge the price of the service
The valuator needs to visit the property to indentify all aspects and factors that would impact the valuation, collect infomration such as floor plans, energetic passport, ownership certificates….
The valuator has to note alll aspects in the most objective possible mannor
He needs to indetify key factors such as
A) exact location of the property, this means the exact street and its surroundings,
B) the condition of the building: not only its exterior aspect, but also the pipes, the balconies, the terraces…
C) energy consumption: has become more and more important ans impacts onsiderably the value of a property
D) orientation: key factor. In Luxembourg south oriented properties have more value that north oriented. But for exemple in southern countries, it can be totally the opposite.
E) distribution: how well the habitable surface is used
F) amenities: contrarily to what most owners think, the property amenities have not an important impact on price. Only important o luxury amenities have a real impact on price
Once all the information is compiled, the valuator has to make the calculations following at least 3 modelling methods.
Once the final value is obtained, the valuator needs to write the report where he/she has to reason and explain her methodology and results
The valuator has to show proofs of all his asumptions and reasoning.
The valuation has to be signed by the valuator
Finally the valuator has to present the valuation to the client.
HOW LONG DOES IT TAKE?
A proper valuation takes around 3/4 days to be finished
OCULAR INSPECTION is ESSENTIAL.
In the same street you can have 2 similar houses, both for example 120m², both 4 bedrooms, 2 bathrooms and so on, BUT imagine one has big problems of humidity because it wasn’t built with good materials. If you do a online valuation you will get the same price for both (a computer does not see humidity on walls….), but DO they REALLY worth the same? NO!!!
Another exemple, take a comparable flat ( ex. 50m², 1 br, 1batr), both in the Hollerich area, one is in rue de la Vallée (nice quite, residential street with trees) and the other is in rue de Strasbourg (the “hot street” of Luxembourg). The online tools where you enter the objective parameters will give you the same price valuation, but again, do you really think they are worth the same? Surely NOT!!
HOw much does it cost?
In your life, do you think you do a good job? do you like to get the righ pay for it? or you work for free?
If a property valuation is free….either
– it is not an accurante, precise and customised (not professional)
– there is a condition behind… Most of the real estate agents offer you a free valuation with the condition that you will let them sell you property afterwards, and therefore they will get their commission
A professional property valuation costs 500€+ 17% VAT