When selling a home there are factors that favor the value to increase or decrease. They are the ones who can make the difference between recovering the investment or ending up losing money.
To clear up doubts, an appraisal will help to know the “strong and weak points” that a home has. “The sale price that a property can receive depends on current market demand and supply, in addition to its specific characteristics,” explains Óscar Larrea, Evernest’s vice president of operations in Spain, in general terms. proptech real estate. The good news is that those particular characteristics can be worked to avoid unpleasantness.
Initially, the appraiser performs the valuation by determining the standard value of the land, estimating the net value of the property and evaluating all the factors. The charges that the property drags, such as debts, are a fundamental element since they can suppose a ballast for the sale.
“Location is one of the great elements to take into account when evaluating a home, especially in very large cities where the market is wide,” says Larrea. In this sense, access to public transport and public and private facilities are essential points.
The age of the building can be an influential factor in the price of housing. Unless it is a historical building, the older the price, the lower the price. To avoid this, including plans and renderings on the possibilities of reform helps to improve the valuation of an old home, since it helps buyers to get an idea “of the potential of the home,” says Larrea.
Height is another variable with great weight. The penthouses with a terrace are the most valued, since they have more light and a feeling of spaciousness. The views towards the sea or the mountains can also raise the value of a property. There are also points that can be negative: whether or not the property has an elevator can increase the value of a home, especially when it comes to floors that are at a considerable height.
A couple eats on the balcony of their home, in Barcelona, last year
In addition to the specific characteristics of the property that are relevant when assessing the price, there are other external factors that can influence that assessment. They would be the economic and social context of the moment, the political and social stability of the country and the growing demand of buyers and investors in that market.
They are out of the seller’s reach, but there are many others that are equally determinant to take into account to get the best out of the home if the situation does not go well.
Gain meters of the house without expanding it
For example, when taking the price/m² of the area as a reference, it is important to calculate it based on the total constructed area, including common elements, such as swimming pools, garages and gardens, and not just the useful square meters. In addition, meters can be ‘earned’ without expanding. Throwing down partitions, removing or adding rooms, eliminating corridors that are too long, improving the feeling of spaciousness and optimizing the space can add value to the property.
A reform can revalue the price. In general, buyers look for homes in good condition and that do not require large investments, at least in the short term. The most valued construction qualities are those that offer durability and resistance. High quality materials such as ceramics, granite and marble are mentioned.
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Also joining the trends pays off. For some years now, there has been a progressive change in mentality in the sustainability measures of a home, accelerated after the pandemic. Homeowners are increasingly aware that an initial investment in sustainable items can raise home value well above the expense.
“There is a greater social awareness on the part of buyers, but also more information about the importance of promoting energy efficiency because it will result in a reduction in expenses in the long term, even if it means a greater investment,” explains Larrea.
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