How To Calculate The Value Of Selling Your Property?

We know that selling your house or apartment is a big decision and can give you satisfaction as well as stress. Because of this, it is important to establish the selling price to be right because if you don't have knowledge about the topic, you could sell your property at a very low price and you don't get the profits that you expect or to a very high price and extend the stay of your home on the market, and both scenarios are not favorable to you.

There is a format of how to calculate the sale value of your property, but if there are certain aspects that you have to consider, such as:

The most common errors when setting the price of your property

To determine the price of your property depends on different factors, among them is the antiquity, its conservation, the location, the quality of construction and to the business opportunity, among others.

• A common error, in the case of departments, is to err on the difference between the value per square meter of covered area and the value per square meter of the free area. Real estate departments usually have both areas and it often happens that the owners assigned the same value per meter square to both.

• Another common mistake is to have as reference properties are not comparable. That is to say, place a property at a certain price because the other person sold his property to that value. Here you do not consider all the factors that have been mentioned previously (antiquity, its conservation, finishes, etc).

The impact of the condition of the property at the sale price

When we talk about the state of the property, referred to its conservation and this influences the value of the sale of the property. The devaluation of the land is calculated depending on the age of the property with material of construction and its state of conservation.

In other words, although the two properties have the same footage, the conditions of its location are similar, or have similar aspects, if one is older or their conservation is in poor condition, its value will be less because it will have a depreciation higher.

• For example, the Depreciation Table of Houses and Departments of the National Regulation of Appraisals mentioned that, in the case of a property which has a 20-years-old and with concrete materials, its depreciation will be 6% only if their state of preservation is very good. However, if their conservation status is considered to be regular, then the depreciation would rise to 16%. In conclusion, there would be a 10% difference in value.

Pricing

An appraisal is defined as the process used by an expert appraiser to determine a lot of value to a well. There are two types of appraisal: the appraisal regulatory and commercial tax.

1. Appraisal regulatory: it is used to set the values of unit officers and the values tariff. For example, to set the tax base for the calculation of the property tax.

2. Commercial tax: uses values of a free market with different ways to determine, for example, the sale value of a property.

In an appraisal will take into account different aspects, such as: the location of the property and its accessibility, zoning and possibilities of the property, the devaluation, the area, the state of the finishes, etc ..

Influence of the location of the property in the price

When it comes to real estate, the value of a property depends on according to its highest and best use. That is to say that the same house, located in different places can have different uses and that influences its price. However, it is important to note that in reality the ground of the property is that it is mainly influenced by its location.

• For example, a property that is located in front of an avenue, you may need a zoning commercial and parameters of construction are more attractive than a property from a residential street. This can cause that the property in front of the avenue has a greater value, despite the fact that all the other conditions are the same as the property facing the street.

Other ways of calculating the value of the sale of a property

We refer to the value of sale of a property as the commercial value that the market assigns. In this way, the way to obtain the value, the more suitable and accurate is making a recovery commercial.

With this analysis of the market, we compare the property with respect to its direct competition, that is to say properties of similar conditions (age, location, area, among others) that are currently on sale, or sold recently.

This comparison allows you to see the average of available offers on the market and allows you to set a market value for the property and is compared with the ratio PER (Ratio Price Benefit).