One of the key points when buying or selling a property is its valuation. This is a certificate which shows the estimated value of the property according to different characteristics such as location, age or distribution.
How is a valuation done?
In order to carry out an appraisal, it is necessary to use professionals (approved companies) that provide this service. Once hired, the appraiser, who is generally an architect or technical architect, visits the property to take measurements and take photographs of it. Once this has been done, the following factors are also taken into account to determine its value:
- Location: Depending on its location (neighborhood, street, etc.) it will have a higher or lower value.
- Size and distribution of the property: The larger the size (useful meters) as well as the better the distribution, the higher the valuation will be.
- Characteristics and qualities of the property: The higher the quality of the construction materials and installations, the higher the value. It also scores if it has soundproofing, if it has good enclosures, etc.
- Energy efficiency: This is something that is increasingly considered and that greatly increases the value of the house. If it has a high energy rating, it will obtain a much higher valuation than a less efficient house, even if they are very similar in other aspects.
- Services in the area: Another of the points that are considered when valuing a house are the services available in the surrounding area, such as parks, schools, supermarkets…
- Age of the house and the building: If they have been renovated, the valuation is revalued.
- Location: Here the orientation is taken into account (the lighter, the higher the value) as well as the height (high flats are more highly valued than low ones).
- No town planning infringements: The valuer must also check with the Land Registry that the property does not have any infringements.
- Market study: After making all these checks, the valuer will also carry out a market study to find out where the property market stands and give a more accurate figure.
Once it is done, does it last forever?
The answer is no, as the characteristics of the property change over time. The location may or may not increase in value, the quality of the property may deteriorate if it is not renovated, etc. It is therefore important to bear in mind that the valuation is for a specific period (usually 6 months from the date of issue) and that, if you decide to postpone the sale, the valuation will have to be carried out again.