Property Valuations - How Do We Determine The Value Of Your Home In Estepona?

After almost three decades in this business, we can honestly say that valuations are one of the most important aspects of our job and they determine the trajectory of any property when launched onto the open market.

What is the impact of an incorrect valuation?

Listings are hard to find. In our case, we feel very fortunate to have loyal clients and we base our business mostly on recommendations. This means that "the properties come to us".

However, when a town becomes popular, new agencies pop up and understandably, they need listings. When there is a healthy amount of competition, we see a rise in overinflated valuations. These are the result of a lack of experience in the property market and / or the desire to please the seller with a high price that sounds very appealing but that unfortunately often leads to a property becoming stagnant on the online portals and buyers will be very aware when a property has been on the market for an extended period.

Then we see the "price drop" tactic, often used by companies who overvalue properties and then regularly announce a price reduction to attract attention. A property shouldn't need multiple price reductions, it should be priced correctly from day 1.

How do we determine the value of a property?

Simple, it's based on many years of experience. It is highly likely that we would've sold other properties nearby or in the same urbanisation. We are very aware of the evolving market and of the criteria that most buyers have when searching for their home on the Costa del Sol. Our valuations are based on real figures, real sales! There is no better guide than this, no magic formulas or technical methods to work out a value (and certainly no App!)

Which factors have an impact on the value of my property?

There are various factors that we take into account, the first of which is location (prime location, close to amenities, local transport, etc). Next in line is orientation - a north facing property will attract a very different pool of buyer than a south or south west facing property. Leading onto other factors such as the amount of outdoor space, views and the condition of the property / the community, along with communal facilities and accessibility.

In today's market, a short term rental license is also taken into account as part of a valuation, as they are not easy to come by with the change of rental laws and if a property has this license, it opens it up to a wider market (investors or families who wish to enjoy the property for a short period and obtain a healthy income the rest of the year!).

Sellers often ask about their furniture and whether they could ask for a higher price if the furniture is included - we would usually answer "no", as furniture is highly personal and tastes can vary hugely from one client to another, although in certain cases the furniture can be factored into a negotiation with a potential buyer.

Should I renovate my property before putting it on the market?

The short answer, no. You may spend thousands on a brand new kitchen and then a buyer will turn around and rip it out in order to match their own personal taste. In our experience, unless you have a very old property and decide to COMPLETELY renovate it (wiring, plumbing, floors, windows, doors, bathrooms, etc), then small updates are not worth the cost and buyers prefer to put their own stamp on their new home.

Interested in selling your property? We would be very happy to arrange a visit and guide you in order to reach the correct market price!