Supply and demand determine the market—which, of course, is also true in the real estate business. Nevertheless, this factor should not be overestimated in an appraisal. In general, market activities determine only about one fifth of the value of a property.
Subjective and intangible values account for about one third of an appraisal. This amount may seem high—yet it should be considered that generally the sale or the purchase of a property is an intensely emotional experience for lay people.
50% of a serious appraisal value is based on the expert opinion of a proven real estate specialist. A value assessment grounded on objective criteria prevents the factors of market activities and intuition from having a disproportionate weight in the overall appraisal and assures a stronger result.
A real estate specialist easily and comfortably handles all the procedures and tasks for you.
An appraisal in 90 seconds
When considering the purchase or sale of a house, a professional appraisal is essential. With their fair and objective appraisals, our specialists assure there are no unpleasant surprises before, during or after the transaction.
While owners generally set an overly high value of their house, potential buyers frequently look for flaws to drive down the price. When subjective features, like lake or mountain views, are involved the expectations between the seller and buyer can quickly diverge. In such a situation, it is vital to consult an independent real estate company to assess the value. A neutral and professional determination of the property`s market value prevents a buyer from paying too much or a seller from losing too much.
To insure a correct and current market value, our experts take into account all factors— the location of the property, the kind of object, the date of construction and the current condition. In regard to the last point, the condition of the roof and the insulation, as well as when the last renovations and reconstruction were done, are especially relevant. Additional considerations like the type of heating system and energy classification, technical features of the property, the value of the land and—last but not least—the net living space, cubic size, cellar and availability of parking also contribute to the appraisal.
Before buying or selling a condominium, a correct assessment, which takes into account all factors, is especially important. For young people, the purchase of a condominium is the often first step into the world of real estate. For older people, it means changing from a large family house to a more comfortable condominium. Regardless of the reason for the purchase, the assessment of value is considerably more complex than with a house. Whether using the property as a home or as an investment: at the moment, condominiums are very much in trend.
Accordingly, the market in this segment of real estate is active. In order to handle the transaction of a condominium quickly, easily and satisfactorily for both sides, a comprehensive and professional estimate is definitely worthwhile. In addition to the conventional evaluation criteria like location and traffic connections, the size, number of rooms, the year of construction and upgrades, numerous other factors, which because of the ownership structure of condominium real estate, exist and need to be taken into account. Therefore, our experts verify other important components included in determining the value of a condominium, in particular, the maintenance and incidental costs, conditions of the renovation/renewal funds, rules and regulations of the building, composition of ownership, easements and responsibilities and special rights of usage that exist for owners.
The market value of the condominium is also determined by factoring in other specific criteria like the floor plan, number of washrooms, specific condition of the apartment, the age of the entire property, building materials used, layout of the levels (ground floor, upper level or penthouse) and additional usable space (garden, terrace, balcony, cellar, garage). The market value appraisal can serve as a basis for the buyer when negotiating and gives guidance to the owner if he wants to sell his condominium.
The appraisal of a plot of land can be complicated: the price of the land is primarily determined by the location, the possible uses (utilization factor), the zoning plans, possible district plan, the building regulations, possible contaminated sites, building possibilities on the adjoining properties etc. When analyzing these factors, it is important to seek the opinions and help of an expert.
When buying or selling a piece of land, one must be aware that the market value is determined not only by the size and the location: just as important are the allowances to build on and use the property. As part of a professional appraisal, these factors must also be throughly examined. To determine a fair land price, our experts analyze the development plan as far as possible and also carry out an economic feasibility analysis for the future property. A quick solution, thanks to an appraisal.
Incorrect price expectations are the most frequent reason for failed, delayed or unsuccessful real estate transactions: if a seller sets the price of his property too high, he may end up sitting on the object for a long time. If the price is too low, the property is quickly sold, but the seller gives away valuable money. Also for a potential buyer, a realistic price expectation is crucial—as a basis for the purchase negotiations. However, the correct market value of a property can only be determined by a profound knowledge of the market and years of experience. And exactly these are the core of Immoleute`s expertise. Take advantage of our know-how and our expertise and let us evaluate your property—or your desired real estate —so that you can quickly reach a deal.
Depending on the object and the reason for the assessment, different appraisals can be effective. If you are simply curious about and want to know the market value of your one-family dwelling or your condominium, then a low cost hedonic assessment is sufficient.
However, if you intend to sell your property, then you should consult the local experts when determining the price.
A professional on site appraisal by a local expert is actually always worthwhile. The seller receives a professionally determined market value, which facilitates the sale of his property. And the potential buyer, not only has a solid basis for the upcoming price negotiation, but also the good feeling that he is not paying too much for his desired property.
A written appraisal is especially important when selling or taking over a property following a divorce or the division of an inheritance. It can be used to avoid unnecessary disputes.
Comparison value method (hedonic method): This estimation method is based on extensive statistical evaluation. The purchases / sales made on the real estate market are analyzed. These properties are screened, based on around 70 value-determining factors. In the end, however, only a small amount of information is needed to create a rating for your property. This evaluation method is very simple and time-saving and therefore cost-effective. For older objects or special objects (luxury real estate, unusual objects, multi-family houses, building land, etc.) this method of valuation is not suitable. It is also questionable in this method how strongly object-specific or neighborhood-specific peculiarities can be addressed. This method is suitable for obtaining an approximate reference value. Relying on this estimate when buying or selling involves risks that should not be underestimated and is not recommended.
Practical method: The so-called real-value method is mainly used for owner-occupied single-family homes. The value of a property is determined by an expert based on the costs of production (construction costs) or replacement—taking into account local market conditions. For the estimation of yield objects such as multi-family dwellings and business and commercial real estate, the income value method (DCF), which is based on the presumable net income (rental income, lease, etc.), is suitable.
In the case of the comparative value method (hedonic method), the value of a property or a real estate is determined on the basis of the purchases and sales on the relevant market. This method is simple, time-saving and therefore cost-effective—but is not suitable for older real estate or special properties such as luxury real estate or apartment buildings. The so-called tangible asset method is mainly used for owner-occupied detached houses and condominiums. The value of a property is determined by an expert based on the cost of production or replacement—taking into account local market conditions. For the estimation of yield objects such as multiple dwellings, commercial properties or special real estate, the income approach is based on the estimated net income (rental income, rent, etc.). Do not hesitate to profit from our experience.
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