In a market as volatile as the property market, assessing the value of a property can prove to be quite a balancing act. Overvalue your house and you run the risk of not selling it; undervalue it and you could lose money… Furthermore, if you need a valuation for tax purposes, you risk a tax reassessment if your property is not declared at its fair value.
So, what mistakes should you avoid? Is it worth using the services of a professional? What precautions should you take to assess your property at its fair value?
Be careful when making comparisons
The property market is constantly changing: prices fluctuate according to supply and demand, legislation, the availability of bank financing…
The valuation process will therefore involve comparing your property with similar properties in terms of geographical location, construction date, quality and floor area. However, other, more specific criteria must also be taken into account, such as the condition of your house, any renovations carried out, etc.
It is therefore important to look at sales taking place in your neighbourhood and town, but without making direct comparisons.
After all, you do not have all the information needed to know the precise characteristics of other properties.
Do not settle for a single valuation
Several opinions are better than one!
Especially as they may vary considerably from one person to another.
Do not take any risks! Obtain two or three valuations at the very least, especially if you are only approaching estate agencies, which will usually visit and value a property free of charge – although some may charge for preparing a written valuation report.
In any event, it is preferable to use estate agents who operate in an area close to your home. If you wish, you can also engage the services of a property valuation expert, who will charge for their services.
Approaching several agencies or valuers will also help you avoid the trap of overvaluation. To please the owner and secure an exclusive contract, some agencies are far too optimistic. Unfortunately, this will generally mean a longer sales process at a price that will ultimately be revised to its fair value.
Be mindful of planning infringements
Do not hesitate to check the plans for your property with your municipality’s Planning Department to ensure that it complies with the regulations.
If any planning matters need to be regularised, we recommend doing so before putting your property on the market. If you do not have the time or inclination to begin the regularisation process, this will need to be taken into account when valuing your house.
Bear in mind, however, that regularisation takes time, and processing times may vary between municipalities. You should also find out which documents must be provided to avoid losing time while your application is reviewed in successive stages.
Regularisation sometimes also requires the involvement of an architect and therefore entails a cost that may be more or less substantial.
Estate agent or property valuation expert?
Your choice of professional depends on your expectations, but also on the relationship you have with your estate agency.
The advantage of using an expert is that they have access to a database containing actual sale prices, rather than advertised prices, which provides them with objective data. They also have the advantage of being impartial in their valuation, as they have no commercial objective in mind. Their involvement is limited to valuing the property rather than selling it. However, there will be a charge for their valuation. Prices can vary from one expert to another, so enquire about the fees charged.
As for an estate agent, if they are active in the neighbourhood, they will also have data on the history of sales completed there. As prices can vary from one street to another, they have the significant advantage of knowing the neighbourhood in which they operate. An estate agent’s valuation is usually free of charge, which is naturally appealing. Nevertheless, you should be mindful of potential commercial bias. Some agencies may overvalue a property in the hope of securing the contract and obtaining exclusivity. Others, by contrast, undervalue it in the hope of achieving a quick sale. It is therefore essential to trust the estate agency to which you entrust your property. To help with this, do not hesitate to look for reviews from previous clients. We recommend RealAdvice, a tool that lists all reviews relating to Belgian agencies.
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