Most real estate agencies that offer online Property Valuer tools use the hedonic method, but this is not the only valuation method.
Remember that for this hedonic method, we rely on transaction data. It allows to have the value of a detached house, an apartment or a rental Property Valuer .
To estimate the value of a property, professionals can use the yield value method . The latter is more suitable for rental properties. If the Property Valuer includes land, the actual or intrinsic value method may also be appropriate.
To define the fair sale price, we take into account the value of the land, the current value of the construction by including the ancillary construction expenses and by removing the depreciation due to obsolescence.
Some professionals also use the Discounted Cash-Flow method or the DCF method . It is more suitable for income assets and to determine the value of the latter, the future flows of funds are considered.
So, at what price to sell your Property Valuer?
After this estimate, you will have a recommended selling price, but you, the owner, are the only one to determine the price at which you want to sell your Property Valuer . You can therefore increase this price to include the trading margin.
If this margin is too high, you risk not attracting potential sellers . In this case, you are going to wait quite a while before you can complete this transaction.
With a reasonable negotiation margin, the selling price will be close to the market value and you can easily sell your Property Valuer. This margin must be between 5 and 10% of the recommended retail price .
Also in this spirit of selling your apartment or house quickly, you also need to think about the psychology of prices.
If the amount at which you want to sell your property falls to 71,000 euros, if you place your ad online with 71,000 euros, your ad may not appear if the user types in 70,000 euros .
You must therefore round off the figures . From a psychological point of view, don’t be afraid to put in 69,000 euros. The potential buyer will perceive your property as less expensive in the collection.