How much is my house worth?

The commercial value of a property is dynamic and is affected by a multitude of factors that are constantly changing. The property value assessment is usually performed by accredited appraisers who have the required knowledge and relevant experience.

Why is it so important to get an official appraisal of your property before listing it for sale?

The answer is simple. Because the determination of the fair and reasonable price of the property is the most basic factor for its successful sale. Obviously, there are other factors that affect the successful outcome of the sale (eg location), however the price is the most important. Next, we will see an example of how important the price effect is, ignoring, for the sake of simplicity, all other factors.

The three main scenarios

If you have not consulted an expert on the assessment of the commercial value of your property and set the price without any relevant research, there are three main possibilities:

• the price is below the market average
• the price moves within what the market considers reasonable
• the price exceeds the price range that the market would be willing to pay for your property

What will usually happen in each case?

In the first case, the most likely scenario is to achieve a very quick sale. The market will mark this as a "bargain" and will rush to take advantage of it.

In the second case, when the price is in line with the market average, the competition is higher. Consequently, buyers will first consider all their options and then come to their final decision. In these cases, the sale can be quick and the target price is usually achieved.

In the third case, when the price of your property is above the average of the competition, things become more complex. Statistics are probably not your ally as out of 100 buyers who will see your property the 99 will reject it. Of course hope dies last and you might think it's worth trying to find the special one! No objection, however you should know that the odds are not in your favor and you will probably have to wait for a long time…

Which strategy should I choose?

If you are seeking a very quick sale of your property because you need an immediate cash injection, then it is wise to set a price below the commercial value of the property.

In the case where there is no time pressure, choosing the average value is the appropriate strategy. The chances of getting an offer close to your target price are high, depending on how fast the market in your property type is moving.

The third strategy is in any case the most incorrect choice. The market rejects overpriced properties and punishes unreasonable demands. Wouldn't you do the same if you were the buyer? And things get even more difficult when you realize that the strategy didn't work and you decide to lower the price. Usually the market perceives this as a weakness and as a result you lose your bargaining power. In most cases these properties are "parked" for a long time on the market and eventually end up being sold at a much lower price than the initial.

Broosco recommends

Knowing the commercial value of your property is the first step you should take when deciding to list your property for sale. Ideally, you should contact an accredited appraiser and ask for a valuation report. Alternatively you could consult your real estate agent. Even if he is not an accredited appraiser, he will likely have the experience to give you a reasonable range of your property value. The final price is your decision; however it is good to know where you stand and what to expect.

• seller
• home owners