There are several reasons to value your property, the most common case is when an owner wants to sell his property, or a potential buyer wants to make an offer, to purchase it.
It is necessary for the owner to define a fair price, in conformity with the market value, so as not to discourage some people or extend the selling period. All the more so because if the price is too high, the buyer will try to negotiate a price much lower than its real value and the seller risks giving in if he is in an emergency situation or if he hasn't had any other offers for some time.
When we try to calculate the real value of a property, we encounter several notions of price:
1. Online estimation
2. Comparative market analysis
3. Calculation according to the price per m² in his city
4. Estimation by a professional on-site
The hedonic method is used by online valuation tools to estimate a property. In Switzerland, banks and insurance companies also use this method to determine the maximum amount they are prepared to finance. It consists of comparing the property in question with similar houses currently on the market or sold in recent months.
To make your online evaluation, simply fill in the specific characteristics of your property:
The estimation tool will also take into account many location-related parameters:
Once these elements have been filled in, the tool compares your property to all those in its database that meet similar criteria and will provide you with a price range.
This method is very reliable for standard goods because the more observations of similar goods, the more precise the statistical regressions are.
The comparative market analysis consists of manually comparing properties similar to yours, sold or for sale in your town, in order to compare the selling prices offered by the owners and to define the price that is closest to your property.
You can very easily on an online ad site, filter houses in your city by selecting features similar to your house and find out the selling prices they have estimated.
Let's say your house has the following characteristics:
Above are the houses sorted in descending order by price per m².
The offline mention means that it has been taken off the market, so it has either been sold or the owner did not want to sell it in the end.
Having selected these filters, the houses that appear in the result display selling prices between CHF 1,790,000 and CHF 2,850,000.
The two amounts are quite far apart despite their close location, which is explained by their very distinct characteristics.
1. The first house at the price of CHF 2'850'000 has been recently renovated and has the largest plot of land among the selection.
2. The second house has a view of the lake, which is a very popular feature.
3. The third has a swimming pool and a plot of land that is larger or smaller than the following ones.
4. The fourth has also been renovated in the years before being put up for sale.
5. Ads 5 and 6 are in good condition, but a smaller plot of land.
6. Finally, the last two show unfavourable characteristics such as a non-optimal location and a poor technical diagnosis, which may be an energy-intensive dwelling or a poor gas or electricity installation for example.
If your house has not been recently renovated, does not have a nice view, a very large plot, or a swimming pool, you can assume that your price per m² is below the first 4 results.
We can deduce that the sample house is close to properties 5 and 6, it could even be worth more knowing that its land is larger. We will, therefore, position ourselves for the property in question, in a range between CHF 11'581.00 / m² and CHF 11'351.00 / m².
It should be noted that the time of sale of a property is also an indicator to be taken into account. If the house has already been online for one year, it is possible that the property is overestimated.
In order to calculate the price of your property, you first need to find a reliable source that indicates the price per median square meter in your city. RealAdvisor provides you with this precise information on its website, find all the prices per square meter in each city and municipality in Switzerland.
This method will allow you to have a more or less exact evaluation, but will not take into account the specific characteristics of your property. Nevertheless, it is still widely used by buyers, who use the price per m² to evaluate a property quickly and to determine whether the asking price is not overestimated.
The real estate professional is often asked to refine the price of the property. This can be a notary, a real estate agent or a broker. The latter analyses the subjective aspects of the property of which the owners are not always aware and also has knowledge of the local market, which will help him to anticipate the impact of the environment on the price of the property. During a visit, he will inform you about the specific characteristics of the property and in order to provide you with a complete value opinion, he will ask you for certain documents:
NB: 🏢 Documents required for flats - more information about the valuation of a flat
- 🏠 Required documents for houses - more information on the estimation of a house
In the case of a co-ownership:
Other documents :
All these documents are of course not obligatory, but allow the real estate expert to make the most accurate valuation possible.
It is important to know that the value of a built property only depreciates over the years, unlike land, which generally increases in value. In order to enhance the value of a property, it is important to highlight all its assets and possibly renovate rooms that seem old. If the cost of the work is under control, these efforts will be much more profitable than selling the property as it is.
Landlords have an emotional relationship with the home in which they have lived for years, so some things they have invested in may not have the same value in the eyes of someone else.
The things that really add value to a property are :
A building reserve
A recent renovation:
Convertible areas in addition to the living area:
Offer and demand:
Conversely, the elements that drive down the price of real estate are :
A deteriorated, not renovated property:
A bad technical diagnosis:
In order to facilitate and speed up the transaction, it is essential not to make a mistake on the definition of the selling price.
To do this, it is advisable to keep a complete watch:
1. By simulating several estimates online and calculating the price per square meter of your property.
2. By comparing the prices obtained with similar transactions or offers for sale in your town.
3. Finally, in order not to forget any element that could impact the selling price, you can contact a professional expert to adjust this estimate.
The analysis of the market and the results obtained through the online evaluation tools will allow you to understand the price estimated by the expert.
Many people find that calling in an expert is not a very profitable effort, but their advice can be invaluable in adding value to the property and speeding up the selling process. Especially since these services are not necessarily paid for, many offer this service free of charge and without obligation, their only remuneration will be a commission on the sale of the property, if you decide to use their services to sell your property.
It all depends on the database of online appraisal tools and how many properties they can compare your property to. In the case of RealAdvisor, it has the largest database of real estate listings in Switzerland with 180'000.- It has also licensed the 3 most popular valuation models in Switzerland including CIFI-IAZI, Wüest Partner and PriceHubble in order to provide you with the most reliable results on the market.
It is entirely possible to estimate your house or apartment yourself by following the steps mentioned above:
You can use a real estate agency in your town, contact a notary or use a broker via the RealAdvisor website, who will put you in touch with one of their local experts who will estimate your property free of charge.
The price of a real estate valuation by a notary for example depends on the complexity of the property, whether it is a standard, luxury or atypical property and the time required by the notary to make his estimate. While many online sites offer this service free of charge, the online estimate is just as accurate if you use one of their brokers. If you allow it, his remuneration will be paid only if he manages to carry out the sale of the property.
You can check on RealAdvisor the prices per m² for an apartment or a house and also the price of an average rent by canton, city, district and postal code.
You can use a mortgage simulator to quickly estimate your borrowing capacity. You can also fill out a mortgage application online and a real estate expert will contact you with several offers from banks with the best rates.