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How to estimate the market value of a property

How to calculate the market value of real estate

houseThe construction costs, the neighborhood, the state of maintenance, the size, the finishes, the presence of the elevator rather than a terrace or a large garden and the energy class: these are the factors usually considered more important and therefore valued to define the price of a house, in Italy and also in France; but are they sufficient? And how much do they really affect the cost? It is not easy to establish the market value of a property. You must first consider the location and the context, then the condition of the apartment, but there are many factors and even more variables that can affect the final price: there is no specific list indicating the values ​​to take into account. The variables are different and the factors also change depending on the type of property. On equal terms, therefore, an apartment in a condominium, a detached or independent house will have a different value.

First, come the construction costs, especially on new or recent real estate

The price of a house or apartment is a complicated intertwining of the market and the costs incurred by the manufacturer. For example on the new will have a major impact the cost of construction, municipal costs and technical costs, the cost of the construction area or demolition.

Second, the position

sea sight adds value to properties

sea sight adds value to properties

Once defined the construction costs defined, the following factors to consider are definitely the position and the area. If the demand is higher in a particular neighborhood or position, the cost will also be higher. This factor can affect the price of a variable percentage between 40 and 80% for example.

Two apartments of 150 square meters with the same characteristics, the first at the gates of Milan and the second in one of the most luxurious streets of the city, can cost 300 thousand euros one and 2 million the other.

Third, the condition of the building

an old condo

an old condo

Then we find the state of the property: It can affect between 20 and 50% of the value: this gap depends on the condition, because if you do not need extra work, you will be ready to spend more than for a house where you incur other expenses to make it habitable.

Old and new construction, what is different?

If the apartment is old, the seismic parameters, the thermal and acoustic insulation and the exterior of the building will be evaluated. When we talk about restructuring, we can find ourselves in front of a house that is comparable internally.

construction, but outside, it is still part of a building built in more or less remote times, with technologies often obsolete.

In fourth place, the surface of the building

The size of the house is in fourth place.

In fifth place, several factors

For example, the elevator: It is important, however, to specify that the elevator affects only slightly, about 15% of the value, if we consider an apartment on the first floor or on the ground floor; if we are talking about a house in a building of more than three floors, it will have a greater impact. The heating system can affect a good 10%, depending on whether it is efficient and economical, or old and consumes a lot of energy.

Other factors include the assessment of the year of construction, including anti-seismicity, energy class and condominium work to be done. These can weigh from 10 to 30%.

 

2 Comments

  1. Barbara Ward

    I would love to live in Tuscany I have dual citizenship and my husband and daughter are very keen to move overseas to live.

    Reply
    1. Lex (Post author)

      Good luck!

      Reply

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