When buying, selling or inheriting, you need to know the current market value of the condominium, villa or land in question. To do this, an estimate of its fair price must be made. There are several methods available. Before you rush to an online calculator, follow these tips. They will guarantee you a coherent evaluation of the value of the property, without underestimating or overestimating it. You will then be able to set in motion the most appropriate strategy.
You can find many price calculators on the Internet. Their purpose is to determine an indicative value of the real estate in the commune concerned. These tools are based on the prices offered in the ads. By entering certain data, such as the type of property, the number of rooms, the year of construction, you can get an initial idea of the current market value of your apartment or villa on the Swiss property market. This service is often offered by brokers (sometimes amateurs) and real estate agencies, as a first step to continue with the sale of the property. Only based on certain predefined criteria, this method remains flawed.
A large number of banks, insurance companies and pension funds nowadays value real estate objects using the so-called “hedonic method” in the context of mortgage allocation. This type of valuation is a value comparison method based on market prices. It was introduced in Switzerland about 20 years ago in the wake of the crisis of the 1990s with the aim of establishing objective valuation criteria. The method is based on the identification of criteria relating to the construction (living space, room layout, land area, etc.) and geographical factors (location, environment).
A property is considered to be a good value for money if it has been built in the past.
A property is compared with thousands of transactions and the prices achieved by similar properties in the previous months, this in a comparable location. Many brokers also use it to get a quick, close-to-market valuation. The method has its limitations, however, as a large database is not always available for certain locations. CIFI is one of the leading consulting companies for its valuation program in the Swiss market. UBS has developed similar software in collaboration with Zurich-based Wüest & Partner.
Only an on-site professional appraisal will be able to confirm the actual value of the property. Many factors are indeed likely to influence the price. This estimation is done by real estate brokers who bring their experience of the market and its trends. They also have a good knowledge of the area in which they operate. This process is essential to enable you to sell your property in the best possible time and conditions. A full valuation is based on the value of the land and the value of the property derived from the building standards, from which depreciation due to age will be deducted.
Based on information provided by the owner and his observations on site, the broker integrates the various characteristics of the object. The geographical location, the neighbourhood, its condition, the work carried out, the typology, the floor it is on (for an apartment), the view and its orientation are determining parameters. Technical and legal elements are also taken into account. Other factors may come into play: the social and economic environment, the proximity of public facilities and amenities, accessibility to urban centres by public and road transport, possible nuisances, etc. Finally, the energy balance of the property can be an important criterion.
In conclusion: only a complete estimate can reflect the real value of a property in line with the current market. This 6-7 page report, carried out by an experienced broker, is an unavoidable prerequisite for setting the right price. It is important to know that the value of a property is linked to the constantly changing economic context. It is therefore advisable to have your property re-evaluated every three to five years. Turn to a reputable broker who is active in your area!