ARE you paying a fair price for your home in the sun, or is the owner being overly optimistic with the asking price? Try using these 5 parameters to find out…
- Use a price estimator: One way of gleaning the value of a property is to use a price estimation service, there are many websites that offer these or you can discuss one with an estate agency. For a nominal fee, the automatic system or estate agent will use the property details and compare with similar local properties to give an estimation of the sale and rental prices of the property over time, saving you all the legwork.
- Location: The main factor when calculating the price of a property is the area it’s in – coastal and city centre homes will be dearer than in rural areas. What local services are there nearby, like schools, shopping centres and public transport? As useful as these are, they can also raise the property price.
- Surface area: The interior and exterior surface area of the property, including garden and parking spaces, should be measured – the larger the property, the more it will cost. Also, consider the distribution of the space – how many bedrooms, bathrooms, etc.? Different uses of the space will be more attractive to different types of buyers and so mean a different likely asking price.
- Preservation of the property: Is the property well-preserved? Note the state of the building materials, the flooring, windows, plumbing, heating and anything else! If it’s in a shoddy condition, it should cost less, but elements such as air conditioning can raise the asking price as there are certain places where it’s in high demand.
- Age of the property: Properties depreciate over time, so older houses may be cheaper. Indeed, a property of only 5-years-old will be 85 per cent of its original price as a new build. After 50 years this goes down to 30 per cent. However, recent renovations to the property will negate these stats and increase the property price.