Are you wondering how to find out how much your house is worth? This very frequent question arises not only when considering selling a property but also when setting up a guarantee, mortgage or third-party pledge, calculating the value of one’s assets, distributing a potential inheritance, dividing ownership of a joint property due to divorce, etc. In today’s post we explain how to go about it and review some key concepts.
How can I find out how much my house is worth in order to sell it?
Various factors must be considered when calculating the potential value of an apartment or house:
- Location: For many experts, this is the single most determining factor, and one that the buyer won’t be able to change, however much money they invest. The exact same house will have a substantially different price depending on its location: city centre or outskirts, residential neighbourhood or suburb, quality of local services (public transport, schools, hospitals, etc.) and road connections, whether it’s set on the seafront or a couple of streets further back in the case of seaside towns, etc.
- Orientation, natural light and views: This is another factor that can’t be altered. When comparing like for like in terms of location and build quality, a well-oriented property with views and plenty of natural light always has a much higher added value.
- Neighbourhood: Closely related to location, the quality of the surrounding properties – whether public or private – also influences the value of a house or apartment. Particularly in the case of an apartment, but also in that of a house set within a residential complex, the type of people that reside in the building or complex has a significant impact on the price of the property. The existence of a well-run residential community with well-behaved, respectful neighbours is a crucial factor in any valuation.
- Characteristics, quality, maintenance and age of the property: The build quality and characteristics of the property are determining factors when assessing how well it will age: the extent to which it might deteriorate and whether or not repairs might be required after a few years. Its energy efficiency, comfort and the quality of its interior must also be considered. Age is an important factor, but always taking into account any maintenance work that has been done, the state of repair of the property or any refurbishments. The value of a property located in the historic centre of a town or city increases dramatically once renovated if its original elegance and genuine charm have been preserved. The same is true of an old farmhouse.
- Market fluctuations: This aspect is totally external to the building itself and the conditioning factors we’ve already listed. The value of a property can differ significantly depending on whether you sell in a period of economic expansion, featuring rising property prices, easy access to credit and expectations of growth, or in a period of economic shrinkage, featuring falling property prices, difficult access to credit and the prospect of economic recession. Regardless of general market fluctuations, you must consider the competition: Is there a large pool of properties like yours for sale in the local area or are such properties few and far between and highly sought after?
- Cadastral value and reference value: These values determine the minimum sale price, below which the tax authorities may demand a supplementary declaration and oblige the buyer to pay tax on the difference if a lower price has been declared. Previously, the corrective base was the cadastral value multiplied by a coefficient stipulated for each area. However, since the start of 2022 the system has been simplified: the cadastre itself already provides a reference value that has been determined for the house, apartment or property in question. This value is listed in the corresponding Cadastral Certificate of Reference Value.
How to calculate how much my house is worth?
In order to carry out a professional valuation, complete the sale process efficiently and obtain the maximum possible value for your property, it’s crucial to be in the safe hands of a real estate agency such as Gènion Immobles. They will walk you through the entire sale process, ensuring that it’s conducted efficiently and securely, obtaining maximum profit.