What makes a house's selling price go up or down in Spain?

Each house is unique and it is important to establish a fair price for selling a property in Spain that suits the property's characteristics and current state of the market. If the price that you plan to market for your house is too high, this can lead to months or years to wait before a buyer is identified. The alternative is to rely on the advice of a professional Chartered Supervisor specializing in property assessments, who can explain what will make your house's sales price rise or decrease in Spain.  flats for sale in qatar

 

César Escobar, co-director of Control de Valoración, a property valuation company in Spain that is a member of the Tinsa valuation company explains that many factors change property values immediately. For instance, a house price can be changed by up to 30% if a lift is not available, the height of the property can increase between €3,000 and €6,000 per floor and a terrace can add up to 25%.

However, competent inspectors know how to distinguish between the property's worth and the owner and the buyer's view. You also recognize that there are unwritten rules and patterns in the economy that estimate or depreciate the overall value of between 5% and 15%.

César Escobar has defined 27 characteristics based on location, type of property, age and the interior of a property that increase or reduce the value of a property in Spain in order to evaluate a property in a more rational and to know what impacts on the price of a property.

Place of the property

Value building and age

Interior Property

Place of the property

Factors which increase the value of the property:

Public transport: this is one of the most significant factors affecting property prices and would have the greatest effect in the future," states Escobar. "Everything seems like the restrictive terms of access to the city center by private transportation, which is why people are searching for situations which enable them to comfortably travel by public transportation," he said.

City center: accommodation is often priced in the town centre, since it guarantees a wider range of facilities within walking distance.

Nearby green spaces: the majority of buyers regard a park within 10 or 15 minutes on foot as positive, regardless of its profile.

Main Street: properties on the main street or neighborhood streets are often more important than those in secondary roads. The exception here are heavy traffic or noise.

Infrastructure and service proximity: there is also proximity to service areas, among the factors which increase the value of Spain's properties, with schools, hospital, shopping and sports areas being the most valued.

Factors that lower the property value:

Road or trade pollution: "The common thing is that the purchaser is looking for tranquility and quietness, so that excess traffic or pedestrians in a commercial area may have a negative impact on evaluation," the expert describes.

Lack of socio-economic coherence: this could be the most subtle conditioning factors associated with this section. "Socio-economic dislocation does not normally promote sales, especially when it is above the neighborhood's social norm. On the other side, a modest style of property may be favored in a more socially ambitious neighborhood," says Escobar.

Value building and age

Factors which increase the value of the property:

Building quality: Escobar's view on this issue is unmistakable: "The higher the quality and the finish on the façade and in areas such as entry, elevator, or stairway, the higher the market value"

Garage: this is a generally added factor, particularly when on-street parking is harder. The best way to assess it is to find out the cost of a car park in the city. "It doesn't have the same price effect in Madrid as in areas where the parking lot costs EUR 60,000 or 80,000, when opposed to where the garage area costs EUR 12,000."

Technical building inspection: The prospective buyer will know, based on whether it is positive or negative, whether he or she will have to pay the next installment or not. And the sum of the fee can be determined in view of the shortcomings indicated in the study.

Community services: an over-valued building offering over-average community services. In the city center, for example, a community with a pool will increase the price between 5 and 15 percent (which is not common in Spanish urban planning).

Buildings that are specially protected: normally because of their design, age or tradition, this is a symbol of exclusivity and above average quality and thus weighs favorably. "These properties may be excluded from IBI property tax payment. Their special cataloging, on the other hand, will contribute to greater conservation demands," he explains.

Energy Performance Certificate: the higher the ranking, the higher the value in terms of professional property valuations. The Spanish market still does not appreciate, however, what greater energy efficiency means, something that "will progressively change with increasing energy bills," Escobar considers.

Factors that lower the property value:

Age: the law that the older the land, the lower its value. Of course, when conservation is demanding, there are exceptions.

Lift: the lack of lift is one of the factors which can most devalue the price of the house, as much as 30% for homes without lift in the center of Madrid. In areas where the typical building does not reach three floors, the price decrease appears to be about 7%.

Community fees: "In an area with a large buying power this isn't very important," says Escobar, "but the better the less fixed costs in the other property segments."

Service deficit: the relatively new condition of a property whose group of owners delivers facilities below the average in its neighbourhood. For example, accommodation in a housing estate setting is devalued in value in a community without sports facilities.

Low commercial floors: companies in the ground floor may also affect the price: the buyer avoids enterprises that are related to noise, smells, traffic or nightlife.

Interior Property

Factors which increase the value of the property:

Exterior flat: it is common for an exterior flat that is often more costly, which typically faces the street and has more natural light. This can change when a street faces heavy traffic or noise or when an apartment faces a wide lit courtyard.

Quality of finishes: quality of property counting finishes for between 5% and 10% of the house value, "but evaluators still value it for an average buyer on an average level," explains Escobar. "Although you put some gold taps in or the interior design is truly special, we will not take them into account, because not all customers will recognize it as an upgrade." "

Smaller homes: one important thing to note is that it is wrong to compare the value per square meter in the city. In a 60m2 apartment, for example, the price is always higher than in an apartment of 120m2.

Balcony or terrace: "The pandemic makes homes with terraces really obsessed," says the specialist. "It can add between 20 and 25 percent to its value when its surface area is over 15 m2.

Rooftop terrace: at the moment the most coveted, this is an authentic real estate gem.

Factors that lower the property value:

Floor plan: it's really important: "In the new building, between 3,000 and 6,000 euros the price of the same flat rises per floor." Tinsa's valuing experts explain that mezzanines and apartments at the first floor often have lower prices than in the remaining buildings, and the marketing issues of houses are significant in cellars, semi-bases and floors.

Conservation status: the regular renovation of a 90 meter property will cost approximately €60,000. It is considered paid off by the surveyor after 10 to 15 years unless it provides a very careful conservation or has its finishes of special quality.

Interior layout: the inspection officer pays attention to the square meters of a property that are useful: "the passageways to link unused rooms; houses that have a tube structure for their wide hallway, attic or ventilation problems, are penalized."

The lack of annexes: the fact that space is decreased inside the house does not remove any value by incorporating spaces such as storage rooms or shared bicycle rooms.