This question is asked by all property owners at different stages of their lives. Whether you require a valuation because you are selling a property or you want to know what value you can pass on to your children, you need an accurate number provided by the experts. We spoke to Dhalia manager Michael Mifsud who has been providing valuations for 25 years to get his advice on the topic.
An accurate valuation takes time
Clients sometimes expect the property consultant to give them a valuation there and then. However, there are cases where this is not possible: for example a property in a new street, or a property subject to strict planning regulation. A good consultant will not rush to provide a valuation if they feel they need more time.
Dhalia consultants have the resources at their disposal to conduct a thorough analysis of the market. They will analyse the value of similar properties in the area, looking at the size and potential use of the property, as well as the level of demand for such properties in order to come to a market value.
In some cases, Dhalia consultants prefer to take a little time and discuss a valuation with a senior property consultant or a manager. This teamwork mentality allows consultants to benefit from the experience property experts with decades of hands-on practice in the field.
The customer is always right… right?
All property agents find themselves in a position once in a while where the client insists on a particular price, even if the market research suggests a lower price. In these cases, the agent will always act on behalf of their client when searching for buyers, but often the buyer is aware of what should be the right price. This usually leads to a longer time on the market, and will eventually result in an equilibrium where the price is lowered towards the market value.
A true market value
In certain areas the value of a property can be determined exactly, for example, an apartment in a major development within a prominent location is presently valued at €6000-7000 per square metre. Such an accurate valuation can be determined because there is a very detailed record of selling prices for that area. This valuation will of course depend on the interior finishing, total square meters, the location within the project, and the floor.
Value for money
When preparing a valuation, the agent has to keep in mind that a buyer is looking for the best value they can get for their money. Therefore the more accurate the valuation and asking price, the faster it will be sold.
Some buyers are simply not interested in a property that comes with ground rent. Agents can understand why this is a complete turn off for some, but it would be foolish to completely rule out properties on the basis of ground rent.
Unique upmarket properties are the most difficult to value. This is because their unique features put them in a league of their own where the comparison with similar properties is not possible. However, owners of upmarket properties shouldn’t worry – Dhalia’s Luxury Living team is composed of luxury property specialists who have been trained to provide valuations for exceptional properties.
Do you have a property that you’d like to sell, or perhaps you’d just like to find out the value of it? Dhalia offers a FREE property valuation service. Call us on (freephone) 800 74949 to set up an appointment.