What is the value of a residential property?
The value of a property depends on many factors available in the real estate market. Therefore, there are criteria that influence market value and demand. These include both the region and the specific living environment of the property. Read for more information.
Structural condition of the property
The property’s condition is usually reflected in the indicative land values set by local expert committees. In simple terms, they represent the value of the property taken in its current condition. Find more information on my site. Next, the buildings on the property must be appraised. To do this, professionals generally use the actual value method, especially for one- and two-family houses and semi-detached houses. The question to be answered is: How much would it cost today to build a facility of the same standard? Depending on the age of the house, sellers should apply discounts. As a general rule, it is assumed that a massive residential house has a typical service life of 80 years. So a 40-year-old solid home has already lost half of its original value.
Furnishings are a matter of taste and value
The lovingly chosen woodwork, the expertly landscaped Japanese garden or the expensive Italian marble tiles have nothing to do with the value of the house in the first place. Such subjective features are not taken into account when estimating the value of a house. The lucky ones will find a potential buyer who shares their preferences. This is often the reason for disappointment. For the seller, the property has a much higher value than for the buyer. The former owner should therefore try to view the transaction very objectively. It is very rare that the seller gets back his purchase price and everything he has invested in the property over the years. The person who buys a property and lives in it himself must simply take into account the loss of value from the start.