Real estate valuation Mallorca
When is an expert opinion required and which qualification/title should one pay attention to?
Whether buying or selling a property, inheritance or during a divorce – a real estate appraisal by an expert or real estate appraiser is highly recommended in many situations and in some cases even mandatory. However, there are a few things to consider when choosing an expert and expert opinion. Both the required appraisal and the required qualification are important.
When is an expert opinion necessary?
When buying or selling a property, it is common to request an estimate of the value before beginning the negotiation process. It is best to hire a professional and qualified appraiser for this. The purposes of real estate appraisal can, of course, vary widely – from tax office resources, insurance claims, a court proceeding, to the distribution of an inheritance.
How to select a reviewer?
Rating companies are a dime a dozen. For this reason, it is also very difficult to decide on an appraiser. It is also important to know that many designations are not protected and that in principle anyone can call themselves an expert. For this reason, you should definitely pay attention to the qualification. Above all, attention should be paid to the title TECPEVAL. TECPEVAL designates real estate agents, architects and lawyers qualified to carry out real estate valuations, whether for inheritance proceedings or credit institutions.
The different evaluation methods
As it is also known in Germany, real estate valuation in Spain is based on the comparative value method or the material value method (insurance value). The comparative value method is used primarily for the valuation of apartments and residential buildings, as long as suitable comparative values of similar properties are available.
However, the search for sources is somewhat more difficult in Spain, because there is a lack of recognized expert committees on housing values or land values, which is why one often has to rely on empirical values.
If there is a lack of comparable reference objects or other important sources, the so-called material value method is used. The individual prices are determined separately (construction or purchase price), added up and the property value determined. Of course, the age and other important factors of the property are also taken into account.
The discounted earnings method is used when the property is rented. Here, the level of return on a property is determined, from which a realistic purchase price can be derived. As a rule of thumb, you can basically remember that a property should generate 5-7% net/year in order to be classified as an attractive investment. Other common valuation methods are the creation value, book value, market value, official value, insurance value and land value.
Important factors in a property valuation
• Age and condition of the property
The property value can often decrease due to age or condition. The appraiser therefore pays attention to the age and condition of the property. He also determines whether the structure of the building has changed over the years. The square meters and the layout of the property indicated in the documents are also checked for accuracy.
The location of a property plays a particularly important price factor. Important location factors are the infrastructure, proximity to the city, transport options, cultural offerings, place with a declining or growing population, as well as environmental factors and conditions, such as noise. Properties in suburban areas are usually cheaper than properties in urban or metropolitan areas, even if the properties are larger and/or better equipped.
• Size, facilities and layout
When buying or selling real estate, it is essential to consider the equipment, floor plans, size and layout of the property. If a property has a logical, modern and diverse layout, if the size is sufficient and space is guaranteed in all rooms, this can of course have a positive effect on the value of the property.
• Supply and demand
Supply and demand are also important factors that affect the price of a property. It is important to choose an appraiser who is familiar with the locality and neighborhood in which the property is located and who knows the market well. Supply and demand for land usually fluctuate regionally.
• Value-Affecting Rights and Encumbrances
When evaluating a property, attention must also be paid to the housing and tenancy law obligations. Which regulations and obligations are regulated in the contracts? But rights of use and building encumbrances can also influence the value of a property.
A real estate appraisal makes sense for many reasons and should definitely be considered. Because only if you know how much the respective object is really worth can you determine an authentic asking price. Because if the price is set too low, you have thousands of prospective buyers, but give away a potentially large amount of money. Of course, you have a similar problem if the selling price is too high, because here the prospective buyers usually stay away.
But when buying a property, you also want to make sure that you are investing your money well and that the investment makes sense in the long term. Real estate appraisals are also very important in the course of a divorce, inheritance, as well as for loan inquiries and bring financial security.
Fact is: The scarcer the supply is in a certain region and the higher the demand, the higher the value of the property. A real estate appraisal always inspires confidence. It is a good basis to avoid losses when selling and to achieve the best possible price.