How to find the right price for your property
How the value of a property is calculated
Several factors determine the value of a property, and determining it is particularly important in the case of an upcoming sale. In the following article, we will inform you why an offer price that is too high can be just as damaging as one that is too low.Anyone who wants to sell a property must know its value, but unlike used cars, houses can only be compared with each other to a limited extent. That's because each one is unique.When determining the value of a property, various factors such as location, building condition and amenities are put under the microscope. "A home from the 1980s, which in the meantime has received facade insulation, a new roof and contemporary windows, has a higher value than a similar house on the same street, where less has been invested," explains Edith Krauss, Managing Director of Tom Krauss Immobilien in Vienna.
These three factors are included in the determination of value
Three areas determined the value of a house or apartment. First: the location. In addition to transport connections (bus, train, highway proximity), the neighborhood plays a role here: is the residential area quiet, is there a lot of green? How good is the supply of doctors, kindergartens, schools and shopping facilities? A second important factor is the quality of construction and the condition of the building, which is determined, among other things, by the year of construction: "In houses from the 1990s, for example, the building insulation and impact noise protection is better than in properties from the 1970s," says real estate professional Edith Krauss.Thirdly, demand flows into the pricing. The real estate boom in many regions, including Vienna and its environs, caused property prices to rise within a few years. This is proven by research from banks such as, the Association of Austrian Real Estate Trustees (ÖVI) as well as large real estate portals such as Immoscout24 or Willhaben. An object that was sold for 350,000 euros two years ago may be worth 380,000 euros today.
Online calculator provides only rough property value
There are free online calculators on the Internet that calculate the property value based on individual details such as the location of the property, the type of property (single-family or two-family house, condominium, etc.), the size of the apartment and the year of construction. However, this can only serve as an approximate value: Owners who wish to sell a house or apartment should not use this as an offer price.The land register provides an important collection of data. All real estate transactions are recorded in the land register. The advantage is that these are sales prices, not offer prices, which are often adjusted during the sales process. These data also provide great help for an approximation of value.In the case of a pending sale, it is advisable to have an expert, such as a real estate agent, determine the market value. "He takes the property under the microscope during an inspection, looks at building documents, knows the demand situation and the achievable prices," says Edith Krauss. Based on this, he can determine a well-founded offer price.
The risk of an excessively high bid price
Because the real estate boom does not mean that real estate sellers should call up an inflated offer price in order to wait and see if someone will take hold. Prospective buyers are usually on the lookout for a year before they find their dream home.In the process, they get to know the market very well and can distinguish between inflated and real offers.Overpriced offers often generate low demand.At the same time, it does not make a good impression if they are online on real estate platforms for months. Over time, the response drops, and the offer price has to be adjusted downward.Prospective buyers get the impression that something is wrong with the property. "In the end, it even has to be sold below value," Edith Krauss points out.That's why real estate sellers should deal with the issue thoroughly and call in the expertise of real estate agents.
You have questions or want to know the value of your real estate? Then contact Tom Krauss Immobilien, phone: +43 1 890 5920,e-mail: office@tomkrauss.at.