Independent property valuation
Valuation of a property
What is the value of a free online property valuation?
The real estate valuation
Reasons to value a property
There are many reasons to value a property. Inheritance, gift, tax, divorce, financing, book value, sale, purchase, estate planning and many more. No matter what moves you to have a property appraised, you want a number you can rely on. A value at which demand and supply intersect as high as possible at a given point in time. The goal is clear, but which way leads there?
Free online property valuation, or better not?
There are now numerous online offers for the free valuation of a property. Hedonic valuation models that statistically derive the value of the property. The big advantage: self-service around the clock. Enter the facts and the result pops up within seconds, simple and straightforward.
Or is it? What is actually the living space? Reading floor plans is not everyone’s cup of tea. Are the stairs included? Wall box, balcony, fireplace, spare room, walls, converted cellar, elevator? Building volume? Where can I find that? Which standard? What is a building, right?
Finally! Found all the documents for the free property valuation, entered them to the best of my knowledge and…?
However, the results that pop up regarding the accuracy of a free property valuation are sobering. The values are based on statistical data and, depending on the provider, have a degree of accuracy of 10% to 15%. Nota bene to the bottom and to the top. This therefore corresponds to a range of 20-30%.
What is extremely tempting with such free property valuations is the possibility of making adjustments to the entries. The living space is particularly exciting. 10 m² more or less means between CHF 50,000 and CHF 200,000 more or less, depending on the region. In this way, even many a cautious entry by an owner is subject to an optimistic correction.
Independent property valuation – a reliable value?!
Is there a clearly determinable value in a property valuation?
Is there even a reliable estimate of the value for a property/real estate? Or is the value purely a matter of opinion? If the result were so easy to derive, buyers and sellers would not have to negotiate. Divorce and inheritance lawyers would have much less to do. Banks, tax offices and insurance companies would have yet another different point of view. Friends and relatives, and especially neighbours, also know the value quite precisely, only no one knows the same. Maybe this “one exact value of the property” doesn’t even exist?
How is the value of a property actually made up?
In a nutshell: Land price, building fabric, renovation needs and a lot of emotions, financing options and a more or less large pinch of “supply and demand”, “time urgency” and “economic uncertainty”.
According to the providers of hedonic valuation methods, everything is taken into account in the transaction data, evaluated and prepared in a customer-friendly way. If this were the case, all providers should actually calculate the same values. However, it is not uncommon for the various systems to show differences of 20-30%. There are also other property valuation services. For example, practically every month valuation vouchers from a real estate agent land in the letterbox, “free of charge and without obligation”.
The providers make an on-site inspection and collect the required documents and data for the property valuation. Only a fraction of real estate marketers have real estate or valuation training. Therefore, 90% of all estate agents use the same statistical systems. So no gain in terms of accuracy. The results only narrow down a little when the property valuation is carried out by an agent with several years of professional experience. Knowledge about the client groups and their financial possibilities limit the values at the upper price spectrum.
A critical point to consider is that the valuation of a property serves as a means to an end for winning a mandate. The value of the property is therefore never entirely free from negotiation tactical considerations.
What other procedures are there to get closer to a real value of the property?
Is a paid valuation of a property better?
The classic real estate appraisal uses other valuation methods. They are all based primarily on the land price of the building fabric and the need for renovation. Many more factors are examined (contaminated sites, remaining life of materials, etc.). The other aspects such as emotions, financing, and the current market situation are only taken into account to a limited extent. In most cases, the property valuation is also derived from a possible rental income. Since the emotional aspects are not part of the property valuation, such a valuation is often used as a valuation for the granting of a mortgage. The document is provided with all the documents that form the basis for the property valuation. This is usually referred to as a valuation report by an independent valuer.
How can the accuracy of the results of a property valuation be increased?
Basically, the accuracy of a property valuation can only be increased if three different valuations are carried out. The classic valuation should never be missing. Only the inclusion of an experienced real estate agent and the consideration of the current market environment allows the value to be narrowed down to +/- 5%!
What property valuation do you need?
Property valuation levels
We distinguish between four levels of valuation when estimating the value of a property.
However, we only offer three of them as a service, as we do not compromise on accuracy. Consequently, we do not offer the first level. All appraisals are based on at least three different property valuations, which are compared to each other.
- Free online property valuation
Unsuitable for the purposes of a serious property valuation. - Real estate market price estimate
Suitable for estate planning, guideline for amicable settlement.
Includes three different valuations and the derivation of renovation costs. - Extended real estate market price estimate
Suitable for financial planning, sale, purchase, divorce, inheritance, renovation decisions and value-preserving measures.
Content as for the real estate market price estimate with derivation of the possible mortgage burden, market assessment and definition of the client segment. - Independent real estate valuation
Suitable for financing by means of a mortgage, tax offices, larger communities of heirs, bases for gifts and separation under the law of property or value determination for the contribution of values to the community.
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