REAL ESTATE VALUATIONS
The importance of correctly identifying the value of the property
Identifying the right market value of a specific property is a very delicate step that will decisively affect the fate that this property will have on the market, once advertising has begun. There are properties that go unsold for months or years, and others that sell faster. Real estate portals are saturated with properties for sale and potential buyers have plenty of choice. Those who intend to buy a property often keep an eye on the market for months before making a decision. A property that remains on the market for more than six months arouses distrust in potential interested parties who will think that it is probably out of price or subject to some particular problem. In this way the property has a ruined reputation.
The value of a property can depend on factors such as:
- the objective conditions (for example: age, state of conservation, finishes, systems up to standard, view, brightness, exposure, distribution of the internal environments, terrace, lift, parking, cellar);
- the trend of the real estate market in that specific period;
- the type of utility that that particular property will have (for example: if it will have a residential use, if it will be used as income, if a change of use will be made).
According to the data of the Bank of Italy survey on the housing market in 2019, among the reasons why properties remain unsold, prevails the difference between the price requested by the seller and the price that most potential buyers are able to offer when they need to obtain a mortgage. This fact blocks many sales because the expert of the credit institution who is required to disburse a loan makes a particular valuation of the property, called a cautionary valuation, which identifies the real market value of the property, and is almost always a value lower than the revenue expectations of the sellers. In this case, the bank expert considers the minimum estimate value to guarantee the bank that the loan will grant the greatest guarantee margin for the recovery of the credit in the event of the borrower's insolvency.
To find out the market value of the property you intend to sell, you must rely on a professional. Our firm carries out comparative market evaluations considering the above factors, with particular regard to the concrete situation of the property. We will analyze all these aspects together and we will certainly be able to show you the best solution for the specific case.