An essential guide to navigating the real estate market and understanding the factors that truly influence a home’s valuation.
When a homeowner decides to put a property on the market, one of the first questions they ask is: “How much is my house worth?” For professionals in the real estate sector, providing an accurate answer is crucial: a carefully conducted valuation directly affects the time it takes to sell and the negotiating margin.
Let’s explore the main factors that influence a property’s valuation and how to start navigating the process with awareness.
Factors That Determine a House’s Value
A property appraisal can never rely on a single parameter. It is the result of a combination of factors, some objective, others more related to market perception at a given moment. The main ones are:
- Location and Area: The location is one of the most important aspects. A house situated in a central or well-served area, close to the sea or with a panoramic view, will have a higher value than a similar one in a less attractive context.
- Size and Layout: Square meters matter, but so does how the space is distributed. A well-organized apartment with good exposure and functional spaces can be worth more than a larger but poorly structured one.
- Condition and Maintenance: Recently built or renovated properties generally have a higher valuation. Conversely, properties in need of renovation will see their value reduced.
- Additional Features: Terrace, garden, swimming pool, view, energy efficiency, as well as garage, parking space, or elevator, are all elements that significantly impact value.
- Urban Planning and Land Registry Compliance: Any irregularities, building violations, or unresolved paperwork can negatively affect the valuation and selling time.
Market Price
What is the market price?
The market price is the amount a buyer is willing to pay for a specific property at a given time and context.
It is a dynamic value that follows the law of supply and demand: if there are many potential buyers and few houses available, prices tend to rise. If, on the other hand, supply is abundant and demand is limited, compromises are more likely.
Common Mistakes Made by Sellers
Selling a property requires attention and realism.
Unfortunately, the market price does not always match the seller’s expectations. Setting a price too high or out of line can prolong selling times and discourage concrete offers.
Here are some of the most frequent mistakes property owners make:
- Overestimating their property: Often, due to emotional reasons or personal expectations, sellers tend to set a price higher than the actual market value, which can significantly slow down the sale.
- Comparing non-comparable properties: Every house is unique in terms of location, condition, and features. Using only the price of similar listings as a reference can lead to misleading valuations.
- Ignoring urban planning or land registry conditions: Irregularities or incomplete documentation can create obstacles during negotiations and even jeopardize the sale.
- Ignoring market timing: Timing matters. A property that stays on the market too long may lose appeal and value.
Professional Advice or DIY?
If you want to get an idea of your property’s value before contacting an experienced real estate agent, there are two useful tools to guide you:
- OMI (Real Estate Market Observatory) by the Italian Revenue Agency: provides minimum and maximum values by area, type, and condition of properties. It’s a good starting point, although it only offers a general indication.
- Real estate portals (like Immobiliare.it, Casa.it, Idealista): many offer automatic valuation services based on data entered such as size, location, property condition, etc. These are useful to get an initial price range.
After gathering this information, it may be the right time to rely on a professional.
An expert real estate agent doesn’t just provide an accurate valuation: they guide you through every step of the sale, helping you avoid mistakes, highlight your property’s strengths, and complete the transaction quickly, safely, and smoothly.
In Conclusion
A correct property valuation is the first step to selling well and on time. Using reliable tools, but above all qualified professionals, helps avoid mistakes and face the sale with confidence.
Need a detailed valuation of your property in Versilia?
If you’re thinking about selling your home, contact me for a consultation—I’ll help you optimize resources and steps for a smooth sale!
