Everything you need to know to get a professional property valuation
We often hear about market values, but not everyone knows how to determine a realistic price and what the process behind a property valuation is. If you are curious to find out what the right price is for selling your property, this article is for you!
First of all, a brief introduction is needed to understand the different keywords that make up the formula used by estate agents to calculate market value:
market value = commercial area x price per square metre x value coefficients
- Commercial area: The very first important distinction to make is the difference between floor area and commercial area. The floor area is commonly used when we refer to the dimension of a house. This value expresses the walkable surface which you can actually step on, without considering walls or other structural elements. The commercial area, on the other hand, does not reflect the actual dimensions of a property, but includes any additional space beyond the main rooms. Perimeter walls are taken into account, as well as ancillary rooms and equipment. This is the element that our estate agents are most interested in during the valuation process.
Quotation: It is the value attributed to a square metre of property, depending on the location of the property. The quotations can be found in a large database provided by the Revenue Agency (Agenzia delle Entrate).
Merit coefficients: They are the true essence to determine an estimated price with particular attention to the intrinsic and extrinsic characteristics peculiar to each property. In fact, they are even more specific factors that further influence and adjust the market value. These coefficients are expressed as a percentage of the amount to be added or subtracted from the general value of the property. Some of these coefficients are, for example, the age and condition of the building, the services provided by the property, the state of conservation, exposure, brightness, energy class and so on.
Why is it important to rely on Engel & Völkers estate agency?
With this in mind, it is clear that property valuation is not a simple operation, as it requires the knowledge of a lot of data, such as market values, valuation indexes, quotations and, above all, performance coefficients. For this reason, it is essential to consult one of our experts in order to obtain a realistic and contextualised valuation, since an incorrect estimate can slow down the sales process and be damaging to both the seller and the buyer. Relying on the experience and professional knowledge of an Engel & Völkers real estate agent will ensure an objective evaluation, avoiding the risk of being influenced by personal preferences, tastes and subjective sensations. A licensed sales expert is also able to provide a personalised commercial strategy to determine the optimal selling price for the property.
Using our
online valuation tool, you can obtain a
free estimate of the market value of your property to give you an initial idea of the income and get a general overview of the situation.
A
non-binding
on-site valuation is then essential in order to know the exact commercial value of the property. Our estate agents will transparently evaluate your property
free of charge and will help you to determine the ideal price taking into account all the individual characteristics of the case.