Things to Know to Evaluate A Home

If you are thinking of buying or selling a property you will be wondering how to evaluate a house. There are many aspects to be assessed in the course of real estate valuations, to make a rough estimate of the price and to understand whether you are selling or buying at the right price. Real estate valuations include different subjects, from those who sell real estate to those who buy the house, from those who invest in property to the workers. It is therefore appropriate to have a clear and comprehensive framework for calculating the real estate value in the most detailed way possible, analyzing in depth all aspects and elements.

During a sale, several variable factors come into play, which in some cases do not coincide with the price of selling with the evaluate a house. For example the owner of a property that has an urgency to sell because he has to move, or because he needs immediate liquidity, might decide to give a smaller value to his home than an owner who does not need to sell right away. In principle, the base price of a property is calculated by multiplying the commercial area in MQ of the property, multiplied by the value of area sqm for properties of the typology and the measure taken into account. So let’s see together some tips on how to evaluate a house.

how to evaluate a house
How to calculate the commercial area of the property

To calculate the commercial surface of the property, you have to add the floor area of the building with the sum of the other surfaces of the rooms, specially calculated with the indexes on line. In this way you will know how to evaluate a house saving a lot of time. In some cases, by making an online home assessment, you can find the commercial surface already calculated in the ads on the web. We find out what are the other tips on how to evaluate a house.

evaluate house value

How to calculate the average value per square meter

There are two methods for calculating the average value per square meter of the property concerned. The first is the easiest and fastest, and plans to visit the portals of a real estate agency where there is already an online house valuation that directly indicates the average prices per square meter in the chosen area.

The second method is a little more elaborate, but it is definitely more accurate and reliable for calculating real estate value per square meter. You have to connect to the main real estate portals, and then select the area of interest. I suggest you consider only those apartments that have characteristics very similar to the one to be valued. Finally, write down all the prices and surfaces indicated in the advertisement. At this point sum all the prices, subtracting 10%, which represents roughly the average margin of price of an apartment, and then add all the surfaces. Finally divide the sum of the prices for the sum of the surfaces, and here is obtained the value per square meter of the area of interest.

how to evaluate a house price

How to evaluate a house?

To know how to evaluate a house now that you have obtained the average value per square meter, you have to multiply it by the commercial surface of the apartment being estimated. In this way you will get an orientation value of the property, so you can evaluate whether the price of a house is out of the market or not. To know how to evaluate a house obviously this operation is not sufficient, since not all the same apartments with the same size have the same price. As previously mentioned in real estate valuations there are several factors that influence the calculation of real estate value, raising or decreasing the estimation of a house, we find out which ones are.

What are the coefficients of differentiation?

The coefficients of differentiation are parameters that affect in the course of the real estate valuations, related to the structure and composition of the house. In the calculation real estate value the differentiation coefficients to be kept in mind are 11:

  1. The plan
  2. The presence or absence of the lift
  3. The exhibition
  4. The views
  5. The height of the ceilings
  6. The rental scheme
  7. The view
  8. The condominium context
  9. The conservative state of the property
  10. The conservative state of the building
  11. The Condominium space

This system ensures extremely precise real estate valuations, even if they require a long time. The differentiation coefficients complement the calculation of the average value per square metre of a house, giving it a much more complete overall assessment. To make the concept better, an apartment on the first floor of 90 sqm, overlooking a skyscraper, where it does not enter the sun and is rather old it will have a lower value than an attic of 80 sqm, where it shines the sun every day, completely renovated and that maybe facing the sea or a beautiful mountain panorama.

Bureaucracy: What to keep in mind

So far, a prevalently technical analysis has been done, but we must also consider the bureaucratic aspects to know how to evaluate a house. Among the documents requested before buying house is the building permit issued by the municipality of belonging at the time of the construction, and accompanied by any requests for a gift for sanatoriums of subsequent interventions. We must then be equipped with the certificate of habitability, that if it is not available must be requested from the technical office of the municipality. There is therefore a need for stacking, aimed at verifying that the cadastral plan corresponds to the current situation. Finally, I recommend that you carefully read the condominium regulation, as there may be unpleasant clauses that provide for unforeseen payments, or pending sanctions from previous owners.

Rating House Online: How to proceed?

The home online evaluation involves a rather quick and simple process. First of all, you must enter in the portal of the real estate agency the location and the main characteristics of the property, to have an indicative evaluation, with average, minimum and maximum value for the rental or for the sale. To have a more accurate and accurate estimate of your home, you can send data to a real estate agency that deals with real estate estimates.

The list of tips on how to evaluate a house ends here, but I want to give you one last tip on how to evaluate a house. Just for all the aspects we have analyzed, it is good to be wary of those who make real estate valuations on the phone, without viewing the property or without knowing the area. Entrusted to a serious real estate agency, asking in-depth questions about the area and the property to know all aspects, only in this way you can start an impartial negotiation, which allows you to sell or buy a property at the right market price.

Thursday, May 25th 2017. | Home Design
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