5 steps to valuing a property

Selling a property – it is so easy to say. It is much harder to actually do. And the first and most important step towards a sale is always the valuation. Today I will explain how to go about it and what to bear in mind if you want to sell your property at a profit.

First – assess the situation on the property market

Whether we like it or not, the market dictates certain trends. That is why you must first find out how much people are paying for nearby properties similar to yours. Note – this is not about how much they are advertised for, but how much they actually sell for. The advertised price often differs from the price at which a house was actually sold. Analyse the cases in your area carefully. Check whether the price was really fair – or whether it could have been higher, or perhaps should have been lower.

Second – check the surroundings of the property

It is important to look at the advantages of the area in which the property is located. This means, for example, the number and variety of nearby shops and pharmacies, the distance to bus or tram stops (which makes it easier to get to the city centre), access to parking, whether traffic jams form in the area, whether the estate is quiet and well lit at night, whether the neighbours get on well, and many, many other things.

It is really worth thinking carefully about these elements, because you never know which of them might be the one that persuades someone to buy the property. For example, a young married couple will pay attention to whether there are nurseries, parks and playgrounds near their new flat. An elderly lady, on the other hand, will be interested in whether there is a pharmacy nearby and how far she will have to walk to reach the stop from which she can get to the doctor's surgery.

Whoever ends up wanting to buy the property, it is always worth having an exact list of all these arguments to hand.

Third – estimate your own contribution to the property

Make a list of everything you have done and all the work you have carried out to increase the value of the property.

Of course, what counts here above all is any renovation work. To their cost you must also add the labour, as well as the time and stress it took you to bring the property to the condition it is in now.

Sometimes – if we are dealing with unusual architectural features or interior design – you will need the help of a professional valuer who will value them correctly. The more detailed, thorough and meticulous you are in approaching this task, the more confident you will feel during price negotiations with a potential buyer. When they try to bring the price down, you already have concrete figures and bills in hand.

If you tell a future potential owner that you gave up an entire summer holiday to replace the old, crumbling wiring throughout the house, everyone will agree that the cost you bore was not just the bills for the new cables. It was also your time, stress and commitment. And that the lucky future owner will be spared all these unpleasant surprises and will no longer have to deal with the electrics.

Fourth – prepare the property for sale

Tidy it up, cover up embarrassing flaws, carry out the necessary minor repairs (e.g. cracks in plaster can be got rid of in a single afternoon, and the effect will last for years), and make sure the house or flat smells pleasant.

You can also consider so-called home staging – that is, additionally decorating the property and creating a positive image of it in the eyes of visitors. Research by Barbara Schwarz, a pioneer of home staging, suggests that preparing a property in a cosy and attractive way can not only shorten the time spent waiting for a buyer by 40%, but also raise the property's value by as much as 10%.

Home staging is particularly useful for properties that a large number of people have come to view, but none of them has decided to buy. This means the listing is well constructed and encourages people to visit, but the property itself, seen in person, did not win them over.

Fifth – prepare the listing

In its basic form, a listing must contain at least:

• Basic data about the property (area / volume, number of rooms, types of rooms available, number of floors, etc.)
• Location of the property (district, street)
• A photograph of the property

But there are thousands of such listings – ordinary and unremarkable.

That is why it is worth making the effort to create a more interesting listing – one with attractive, professional, well-lit and well-framed photographs, an intriguing description of the property, its floor plan and a map showing how to get there.

This lets potential buyers tour the property in their imagination – which will significantly increase interest in viewing it in person.

By following these 5 steps correctly, you can now arrive at a valuation of your property that works in your favour.

If you too need to value your property professionally and do not feel up to doing it yourself – use the services of a professional estate agent. Contact me about it – that way you will probably avoid costly mistakes.

And you – what experience do you have of property valuation? Share it in the comments.