There are several values for any property listed on any website: What the vendor believes it’s worth, what the buyer may think it is worth and what a professional appraiser (surveyor or bank) may think it’s worth. All three must be aligned to have a successful outcome.
Index
Introduction
Your property is worth what someone is willing to pay for it! This is the definition of market value here in Sotogrande and anywhere else in the world. Market value is what a fully informed, willing buyer would pay for a villa. These real purchases can then be compared to properties not yet on the market to establish a market value for these soon-to-be-listed homes.
Comparables or COMPS.
To value property, I use “comparables”, or COMPS. I compare the property I am valuing to recently sold homes. I do this before listing a property to determine the listing price of a home and I do this to help buyers determine a fair offer price.
So, what am I comparing? When making comparisons it is important to consider quantifiable criteria. Firstly timeline. Comparisons should be made to recent sales, and certainly no longer than six months. Secondly location. I compare properties located in proximity. No good comparing property way up in Sotogrande Alto with villas on the Costa side of Sotogrande. Thirdly property size. Similar build size and plot size can be compared, and if this is not possible then I use a €/m2 number for the build and plot. Fourthly features fixtures and fittings. The level of finishes such as types of floors, windows, doors, and appliances. And lastly, age. The properties being compared should be approximately the same age. Newer villas and apartments have more modern styles, contemporary layouts, newer heating and cooling systems, and appliances, which can increase value.
So, the value of your villa will mainly be associated with the value of the land upon which it is built and the location, and the value of the actual house which depends on many factors such as size, views, construction, characteristics, refurbishments, furniture, and accessories. See my “What’s worth more: the home or the land? ” blog for more.
Valuation tool
On the Noll Sotogrande website, you will find a valuation tool. This tool is based on comparisons with similar properties AS LISTED ON WEBSITES and does not use the method described above.
If you are looking to sell your Sotogrande property soon send me a message at charles.gubbins@noll-sotogrande.com or contact me by phone at +34 607911661, and I will happily arrange a first consultation!
Personal thoughts
Valuing property is not difficult. What can be more complicated is establishing value in a market that is in growth or in decline and establishing where the property is on a value curve? Anecdotadly, the hardest evaluations I have had to make are for property owners who are so emotionally involved that they have unrealistic expectations. In the end, though any property is only worth what someone is prepared to pay for it!
Do you know how much your property is worth?
Charlie.
