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Real Estate Valuation: what it is, how it works and why it is important to rely on a real estate agency

Real estate valuation is a fundamental process in the world of real estate, both for those who want to sell or buy a property, and for banks, investors or real estate agencies. But what does it really mean to “value” a property and what are the criteria that determine its value?

What is Real Estate Valuation

Real estate valuation is the estimate of the market value of a property at a given time. This value represents the most probable price at which a real estate asset could be sold under conditions of free competition.

Why it is Important

Valuation is essential for:

• Sale or purchase: knowing the right price allows you to sell the property at the best and quickly.
• Mortgage application: banks value the property as guarantee for financing.
• Investments: investors analyze the current value, future potential and possible income.
• Taxation: the estimated value influences inheritance taxes.

Main Valuation Methods

There are different approaches to real estate valuation, including:

1. Market Comparative Method
   
   The most common, it is based on comparison with similar properties recently sold in the same area. It is used mainly for residential homes and the experience of the real estate agent is important based on the properties he has recently sold. To these, any differences in characteristics must be added or deducted. The more similar properties the agency has dealt with, the more accurate the valuation will be. For this reason, it is important to carefully choose the agency you rely on.
   
   
2. Cost Method
   
   The value is estimated considering the cost of rebuilding the property, net of physical and functional degradation. It is used for new buildings.
   
   
3. Income Method
   
   Used for income-generating properties (e.g. shops or commercial properties): it is based on the capitalization of expected future income.
   
   
4. Residual Value Method
   
   It is mainly applied to building land and development projects: it considers the value of the finished project minus construction costs.

Factors that Influence the Valuation

Numerous elements affect the value of a property, in this case for a specific context such as that of Lerici with a market mainly linked to tourism and second homes are:

– Local supply and demand, based on the current market moment therefore the quantity of houses for sale and that of potential buyers with active research

– Location and distance from the sea and from the center with services

– Possible sea view or, in any case, view from both internal and external spaces in addition to the exposure

– Presence or absence of external spaces (balconies, terraces, gardens)

– Presence or absence of parking space

– Surface area and internal distribution

– Maintenance status

– Year of construction

– Energy class

– Floor and presence of a lift

Who Can Make an Valuation

Valuations can be made by:

• Real estate agents
• Certified experts and valuers
• Engineers or architects
• Surveyors

If you want to put a property up for sale it is important to rely on an appraisal carried out by a real estate agent. This is because by continuously seeing the trend of the real estate market in the area, it will be able to provide you with truthful and updated data that is functional to the sale and not merely technical.

We, at Casa con Vista srl, ​​have been present for a long time in the territory of Lerici and the seaside areas of the province of La Spezia and thanks to our know-how, we will be able to best evaluate your property.

Subsequently, thanks to our database with many active and targeted customers, and the publication on the main Italian and international portals, we will be able to help you sell it in the best possible way.

Contact us to receive a free evaluation of the property.