One of the most important questions when someone wants to sell a property is, without a doubt, the following… how much is my property worth? To answer this question we must start from an objective point of view and it is never easy to do so because the sentimental factor always intervenes in the equation.
From the owner, who is usually attached to the property or seeks to make it profitable by looking for the buyer who buys it for the price he thinks is ideal, to the real estate agent who is at the crossroads of not wanting to “disappoint” the owner with a price that it may consider “too low” and therefore inflates the price of its valuation. Based on our extensive experience in the sector, the starting price of a property is one of the most important aspects to be able to sell it in the short/medium term. Therefore, putting an excessively high starting price in the hope that a buyer will miraculously appear and give us a juicy profit, could work against us in hindsight and cause us to end up closing at a lower price than we expected. It could have been sold from the beginning. Time is a value that very few take into account in operations of this type, but it is directly related to the price and smart buyers, who are always attentive to the history of each property, tend to give less value to a property that has been in the market for a long time. market and that has suffered several price drops since it was published. It may seem like a minor detail, but the psychological factor of supply and demand dictates that a good that has been on the market for so long ‘will be for a reason’ and therefore creates mistrust. This fact means that, despite the fact that the buyer is honestly interested and likes the property, it is very likely that they will make a lower offer than if it had just been published.
For this reason, from REAL ESTATE BOUTIQUE INVERSIONESBCN we strongly advocate the importance of an assessment that is as objective as possible, always keeping in mind that subjective part inherent to the attachment that always exists for the property, but in a percentage that does not negatively influence the final price and therefore Therefore, do not leave the house on the market for a long time. We believe that an assessment must always be made from three different perspectives, which must converge on the same approximate final value and which we will detail below. If this does not happen, it would be necessary to analyze the reason or reasons why these are not coinciding in order to justify an adequate final price. – Valuation according to witnesses: using properties similar to our property, which have already been sold or are currently for sale. – Valuation according to average price: in this we will analyze the price range to which our strip asset belongs, it can be higher than the average (it has quality finishes, it has prime characteristics, etc.) or lower than the average (it is about to be reformed , origin, etc.). – Open valuation: where we base ourselves on the characteristics of the property, it can have a value given by an interesting net return (4% on average) or considering the cost of a reform to the price of the asset and thus be an opportunity, to give a couple of examples. From our perspective, any professional and objective market assessment must have a comparison from various points of view and must always be commented and explained, it is not a simple mathematical operation. Together with professional photos, videos, video tour, virtual tour, plan, and other existing graphic material with a clear and concise description of all the information on the property, this will pave the way for an optimal sale, where the precious factors of time and money are will be present, there will be no information gaps and all this will generate the interest and confidence of potential buyers.
You can request a free valuation of your property in 24 hours here at this link from the following link on our website: http://www.inversionesbcn.com
We conclude with this phrase about the valuation that we have found amusing but quite accurate:
“The valuation is something that we can explain but you are the ones who have to understand it”.
Davide Rigoni CEO InvestmentsBCN