The individual value also plays a role
When professionals attempt to set the value and price of a home, they try to do so using objective valuation points. But when the purchase price is set, the subjective value of the buyer must also be considered, as well as the plans that the buyer has for the future property. So, for example, an individual who wants to buy an older property and live in it in its current condition will not be prepared to pay the same price as someone who wants to convert the house into rental units.
How is the value of a detached house or condominium determined?
Various factors have to be taken into consideration when valuing a condominium or detached house. One key factor is the location. For example, buildings in peripheral regions with poor transport connections can be worth 40 to 50 percent less than comparable properties in central locations. Other factors that also play a role in the valuation of real estate include the area and volume, year of construction, number of rooms and the standard, condition and quality of the interior fittings. Other issues to take into consideration are any backlog in building maintenance and restrictive conditions, such as rights of first refusal and building codes.
What possibilities does the seller have to determine the selling price?
One way to determine the value of a house or condominium for the purpose of fixing a selling price is with the help of a real estate agent. However, caution is called for. Some real estate agents quote prices that are far too optimistic because they want to be hired to sell the property. Another option is an online estimate, which sometimes owners can do themselves. Again, however, one needs to be cautious. A valuation of real estate by the owner is frequently unrealistic, as owners are inclined to give more positive weight to the qualities of their home than an independent expert would. In order to reasonably estimate the market value of a condominium or detached house, an expert should get involved. Assistance can be obtained from an industry association, such as the Swiss Association of Real Estate Appraisers (SIV), the Swiss Real Estate Association (SVIT) or the homeowners association HEV Schweiz, which can provide an experienced, serious, independent expert to appraise the property.