Faced with the complexity of the real estate market, estimating the value of your home can quickly become a real headache. So if you feel lost, here are some tips to understand how to estimate your property easily.
Are you looking to sell your home quickly while realizing an attractive real estate gain? It is essential to properly estimate the value of your house or apartment. Indeed, a bad sale price, whether it is too low or too high can make you lose a lot of money. If you sell your home below the real estate market price, you will realize a bad financial transaction. Because you will receive less money than its real market value (the market value of your property at an instant t on the real estate market). On the contrary if your selling price is higher than the market price, you may have difficulty finding a buyer. You will then have to embark on long and costly sales approaches.
A good real estate appraisal is therefore the key to finding a buyer quickly without selling your accommodation.
This estimation work is important because potential buyers are generally very well informed of average selling prices. They visit on average 4/5 goods before buying and have a very good vision of the market thanks to real estate portals.
Wondering how to estimate a house? Be aware that it is easier to use an online appraisal tool or to use a real estate agent. However, you can very well try to estimate your property by yourself using one of these two methods:
You determine the value of your property by comparing it to the transaction history around you. This method is ideal for individual houses, apartments and rental buildings (with a maximum commercial part of 30%), if there are enough similar objects on the local market. First, you can look at real estate prices in your geographic area. For example, you can refer to the history of estimates published on ALBER. Then, consult the advertisements of real estate which present the same characteristics as yours (surface, general state…). Attention, these data are to be taken with caution, the advertised price is not necessarily the transaction price (generally 8% below). Pay particular attention to the date of publication, if it exceeds 6 months, this is not a good sign.
Be careful when comparing your accommodation, not to be influenced by your attachment to your property. Try to look outside, you will get a much more reliable estimate.
This method is especially interesting if you bought your home as part of a rental investment. It allows you to estimate the value of the property based on the rate of return on your rented accommodation. You just need to know the rent at which your accommodation is rented and the rate of return requested by the investor. By dividing the amount of annual rents by the rate of return, you get an estimate of the market value of your property. The goal is not to overcharge your accommodation in order to maintain a reasonable profitability and therefore to attract potential buyers. Also, take care that the rents charged are in agreement with the market, an investor will calculate a rental reserve.
Using online real estate appraisal software is probably the quickest and most convenient way to appraise your property.
Several free simulators with very simple and intuitive operation exist today as on our online estimation tool. After taking 2 minutes to enter a certain amount of information, they allow you to obtain a relatively precise estimate of the market value of your accommodation.
For that they cross many databases according to several criteria. First, objective criteria such as area, geographic location or the date of construction. To this are added other criteria on the general condition of your property (work to be planned, possible presence of a vis-à-vis…). These criteria make it possible to refine the price of the known m2 in your district according to the characteristics specific to your accommodation.
The estimation simulator then analyzes the real estate transactions carried out in your neighborhood and in your building in order to give an estimate as close as possible to the reality of the real estate market in your geographic area.
The advantage of using an expert to estimate your accommodation is that it will be more objective on the characteristics of your property. Indeed, when you try to estimate your accommodation yourself it is difficult to have a neutral look.
By visiting your home to assess all the criteria relating to your accommodation, a real estate agent represents a practical solution for estimating your property and many real estate agents give free estimates. However, some real estate agents do not hesitate to give a high estimate of your property in order to encourage you to sign a sales mandate with you. We therefore advise you to use several different techniques in order to be sure of the estimate of your accommodation.
At ALBER, we believe that online estimation does not replace the opinion of an expert in your area. Each online estimate is checked by an expert in your sector. The role of the latter will be to correct or clarify it if necessary.