Are you deciding to put your property up for sale? One of the first things to do to start in the best way is to identify the right value to offer to the market.
This special guide collects the examples and good practices that Stefano Petri, founder of Great Estate, has gained over 25 years of experience in the evaluation and sale of prestigious properties. You will receive targeted advice to approach the evaluation with the right method, the first fundamental step for a successful sale.
You have decided to sell your property, where to start?
In taking this important step it is important to have full awareness of the value that can be attributed to the property. Here are the 3 most common critical points of an evaluation that a professional method can help you transform into advantages.
- The market trend
Most owners want to achieve a return of 20% or even 30% higher than the investment made to purchase and renovate the property they put up for sale.
A more than understandable expectation, but which leads to a perception distant from the reality of the market. For example, from 2008 to 2020 the value of properties of any type in Italy suffered an average annual decline of 5%, a trend that led to property prices almost halving over the course of approximately 10 years. Why should the market give your property a higher value when it is decreasing?
The value of properties, even in the prestige sector, decreases over the years and can suffer further drops based on various other objective factors that a reliable evaluation must take into consideration for a correct estimate.
- The subjective value
Well-founded statistical analyzes identify the added value that each owner tends to attribute to his property within a range of 20% to 50%.
Anyone who has purchased a property in life knows well the sacrifices made, how much the renovation or maintenance work cost. Furthermore, in many cases the house has been lived in, preserves memories and bonds of inestimable value for those who are protagonists of its history. For every owner, their home is unique and better than others. Translating these reflections onto a hypothetical buyer, the perception is completely different and for this reason we speak of “subjective value.” The buyer we are looking for is willing to invest in your property in a conscious manner, therefore on a more logical than emotional basis. Between their point of view and yours, lies the objective value, the one towards which the professional evaluation tends to approach.
A professional respects the subjective value you attribute to your property, remaining transparent and objective in producing an evaluation closer to the real sales opportunities.
- Word of mouth
Friends, relatives or acquaintances without a solid professional basis will always tend to confirm or even increase the value that the owner expects to achieve from the sale.
Subjective value can often be shared by people who are personally familiar with the owner or who simply want to be encouraging and supportive. Positive feelings which, however, can reinforce upward expectations, obstacles to a success-oriented sales strategy.
Another possible source of erroneous beliefs are relationships with professionals who promise sensational and fast results, but only in exchange for considerable investments, or who propose summary assessments that are not adequately documented. It’s a scenario that may be familiar to anyone who has a property on the market that they haven’t been able to sell for several years.
An objective assessment is supported by verifiable documentation and analyzes conducted by specialized professionals. By relying on Great Estate, you will be fully aware of the value of your property and all the factors that contribute to its attribution.