Knowing the value of your property involves much deeper questions than what you think about it. It is necessary to know the potential of the property to be able to measure its size, value and possibilities. In that case, a few key questions will help you to define.
What is taken into account when evaluating real estate?
- Do you know all the real potential of your property?
- Do you follow the movement of the real estate market?
- Are you aware of public investments in the region where the property is located?
- Do you know what are the forecasts for infrastructure and possible improvements in the region (expansion of access roads, construction of shopping malls, parks, etc.)?
- Can you calculate the estimated rent value over the sale price?
If your answer to these questions remains “no”, it will probably be a risk to establish or even consider proposing a value in a future negotiation.
Read more: Want to know an estimate of the price of m² and the sale of apartments in Belo Horizonte? Casa Mineira has a tool that uses statistical and artificial intelligence techniques that analyze data from the entire base of properties advertised and negotiated to estimate the sale price.
Still, there is a possibility that you may have said “yes” to some of the questions. However, even if you know part of the above questions, the reality is that all the questions are part of what is taken into account when evaluating real estate.
But do not worry. We are here to help you with that. If you want to be able to answer the famous question: “how much is my property worth?” you need to find out what is taken into account in the evaluation of real estate and what impacts on the evaluation of real estate. Therefore, we will explain how the assessment works in practice and when it is done. The time has come to discover the “secrets” about property valuation.
What is the purpose of property valuation?
Property valuation is the technical determination of the value of a property. It can be for different purposes and objectives, both inside and outside the judicial scope. Situations include:
- buy and sell;
- collection of taxes;
- dissolution of company;
- real estate dynamics studies;
- among others.
Among the urban furniture that can be evaluated, are land for commerce, housing, etc., apartments, houses, industrial buildings, urbanizable plots and commercial rooms.
How Real Estate Appraisal Works
There are certain conditions and details that will only be taken into account by qualified professionals. The owner may not be able to evaluate correctly for personal reasons and because he will not be able to understand crucial details.
In addition, property valuation is also important for legal reasons. The duly registered and official appraisal report is recognized before the competent bodies, which guarantees legal support in future situations.
Property valuations are not that simple. Each assessment must take place within the relative norms of the Brazilian Association of Technical Standards (ABNT) by NBRs 14.653-1, 14.653-2, 14.653-3 and 14.653-4. In addition, it is important that the professionals involved are accredited in the National Registry of Real Estate Appraisers (CNAI) and regulated with the National Council of Realtors (COFECI).
Property valuation experts
Having the help of a specialized and experienced company in the city where your property is located can prevent you from having future disappointments and even surprises. Without help, you run the risk of wasting time on unnecessary expenses and demands due to the lack of customers and, mainly, that your property “helps to sell” others with the same profile, but cheaper. If yours is above the real selling price, the buyer will have the impression that the other is cheap and is a good market opportunity. In addition to not selling your property, it also helps to sell someone else’s property.
You can even think of phrases like: “But my neighbor sold the apartment last year for a much higher price” or “But this is the price I need”. If you want to sell or rent, need to know that Belo Horizonte has moved quickly and, therefore, property values in the past may have suffered variations. Most properties are valued, but there are also two other possibilities: that their value will be maintained or that it will be reduced. The reduction can happen due to several circumstances such as lack of maintenance, depreciation of the property, changes in the structure of the region, changes in legislation, changes in the property, among many others.
Still, in not-so-rare situations, your neighbor, in the intention of counting an advantage, may have increased the real value of the sale. It may also happen that you were based on the disclosure value, which could be above the assessment and not necessarily what was actually closed.
The valuation of real estate must be carried out with precision and technical reasoning of the market value. It is a task that requires knowledge and, in this case, practice leads to precision. In other words, it is important to consider the price determined by a real estate company of renown and market prominence, which has experience in the subject. In addition, it is important to remember that the more distant from the fair price, the more distant you will also be from the market and consequently from closing the deal.
How do I find out how much my property is worth?
There are different ways to carry out these assessments. Some are more complete and consistent with reality and others more superficial.
Always be suspicious of rushed assessments, those in which the broker, still inside the property, already gives you the value. In most cases, the value shown is incompatible with the market value, and may be above or below what it absorbs, causing you to miss opportunities.
Even with certain know-how, property valuation is one of the most peculiar tasks of the negotiation process, as it must reflect exactly the most current market practices: consumer demand trends, the sharp or reduced demand for the property profile and its location, as well as the particularities of each (original, renovated, preserved, view, floor, age, quality of construction and finish) and the value of sale or lease of similar properties.
Therefore, a good real estate company does not immediately pass the price on to the client. In general, serious real estate companies have committees specialized in the evaluation of real estate, which take the most varied criteria for decision-making, discussed cautiously among several specialized professionals.
It is customary for this assessment to be carried out free of charge by the real estate agencies, in the case of real interest in the sale or lease of the property. However, if the property is subject to an inventory and family succession process, as well as marital division, it will need an equity appraisal report specifically prepared and adapted to the legal processes, in which case, in this case, a separate percentage will be charged on the service.
How to identify a good company or professional for the evaluation of real estate?
It would be really wonderful if every professional had a seal of quality, right? But who says he doesn’t? It is clear that the stamps will not be stamped on the faces or facades, however, it is possible to identify the reputation of a real estate company through small practices:
- Check the company’s tradition;
- Search for information about your registration in the market, (complaints at Procon, indications of people who did business with the company, etc.);
- Know your physical structure;
- Visit his website;
- Analysis of the disposition for installation and maintenance of “Vende-se” or “Ruga-se” signs and service hours. In general, to facilitate the negotiation, the real estate agents operate from 8 am to 7 pm, in addition to Saturdays and Sundays (shifts). Some even have extended hours, which is undoubtedly a great differentiator.
The choice of a real estate company with a good reputation in the market is fundamental for the negotiation of your property. In addition to being a link between you and potential buyers, it will guide you technically and legally through the process, from property appraisal, to issues related to contract writing and writing and business security.
In addition to the concept, also check if it has an active participation in major real estate advertising portals in Belo Horizonte. The greater the visibility, the greater the chances of you getting a good deal.
The Casa Mineira Portal is an excellent aid tool. Here, you can find the average value of m² per neighborhood in BH.
Always prioritize communication with the real estate company and seek to understand which attributes were considered in determining the price. The approach of the owner to the company through the broker responsible for the evaluation of the property is essential, after all, it is he who will give you a general position of acceptance of the property by the market. It is through this feedback and the lack of concrete proposals that we perceive an inadequacy between the price asked for the property and its effective demand.
If you are looking for a serious real estate company, capable of fulfilling all the criteria presented in this text, get to know Casa Mineira . For any of the situations mentioned above, Casa Mineira can help in each of the stages of the property evaluation, search and negotiation process!