Property valuation is a step that sellers in our market often overlook. Influenced by information available to the general public, many are inclined to believe that they can set the price they desire rather than one that is market acceptable or realistic. In short, they tend to overprice. Consequently, some properties circulate on listings for months, leaving owners wondering where they went wrong.
To sell a property faster, for the maximum price.
“Creating their subjective image, sellers forget that each property is a project or universe of its own,” says real estate advisor Ivan Varat.
„If generalized information or statistics indicate that the market is growing, it doesn’t mean that the price of every property has automatically increased. The condition of the property, micro and macro location, encumbrances, and even neighbors are just some of the factors that could be considered in setting a more realistic price..“
If a neighbor on the street sold for an exceptionally high price, it doesn’t mean that every house or apartment nearby can achieve the same. That is simply a wrong conclusion that will deceive you, prolong the sale, and move you further away from your goal.
And the goal of every seller is to sell the property as quickly as possible, for the highest possible price.
How long does property valuation take and how much does it cost?
Property valuations are conducted by authorized permanent court experts and appraisers, following the Law on Real Estate Valuation. Their services are required for official purposes, such as for financing or loans.
The market value of properties is assessed using three methods and seven procedures, with prescribed data collection methods. There is no standard timeframe for a valuation. It depends on the agreement with the client. However, in practice, valuations typically take three to four days, and in some cases, up to a week. Depending on the complexity of the project and the size of the property, the cost of this service can range from 200 to 330 euros on average.
In addition to on-site inspections and document analysis, experts also utilize the eNekretnine system in their work. It is a database that records all real estate transactions in the market. Each property is logged with its area, size, and type (apartment, house, commercial space, agricultural, construction, or forest land). Among other things, achieved prices are also visible in the database.
Free property valuation
The eNekretnine system is designed for professionals such as experts, notaries, and licensed real estate agents. There are real estate agencies that offer this service completely free of charge.
When something is free, people usually wonder what the catch is. In this case, the catch lies in the market situation. Despite the changes occurring in the European and American markets, we still have more buyers than sellers, especially in the spring, as in this year, 2023, when the race for subsidized housing loans begins.
Agencies aim to attract as many quality properties as possible to their advertised property database. By offering free property valuation services, they attract sellers.
„If you are unsure about the price to list your apartment or house for sale, you can request a free valuation for your square footage. With a more realistic market price, you gain a better starting position in the market and on listings. You can avoid exhausting viewings that won’t bring you the right buyer.“
Ivan Varat, real estate advisor.
I want to sell a property, how much money can I get for it?
Agencies like San Patrik Nekretnine offer free market property valuations.
Using the eNekretnine service, numbers, and their own experience, sellers are given a range within which the property price should be, says Ivan Varat, owner of San Patrik Nekretnine. By using the comparative method, the property is compared to similar sold properties in the same area. It is crucial to consider a close time period because something sold in 2015 does not have the same price as in 2018, let alone 2022 or 2023.
The eNekretnine application contains the achieved prices of all realized transactions in Croatia. It displays dates, locations, and sizes, making it a highly useful service. However, Varat explains that the problem is that people often declare lower prices in contracts to avoid real estate transfer tax, which means we still don’t have a complete and realistic picture of prices. That’s why agents rely on their own databases with real achieved prices and their daily sales experience.
For those who are unsure how to determine the value of their property, here is a rough list of factors to consider:
– Location
– Position and orientation
– Age of the property
– Condition of the property
– Condition of installations
– Roof, facade
– Number of floors, presence of an elevator
– Utility costs
– Access to amenities
– Schools, kindergartens, parks
– Parking
– Balcony, terrace
– Proper documentation
– Any encumbrances
Author: Stanarica.hr
