How to work out the price of a property

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What should you keep in mind when valuating a property?
29 December 2017, Redaction

Are you paying a fair price for your home in the sun, or is the owner being overly ambitious with the asking price? Try using these 5 parameters to find out…

1. Location: The first factor when calculating the price of a property is where it is – homes by the coast or in city centres will cost more than in rural areas. The nearby local services, like schools, shopping centres and public transport can also raise the property price, as useful as they are.

2. Surface area: The interior and exterior surface area of the property, including garden and parking spaces, should be measured – the larger the space, the greater the cost. Also, note the distribution of the space in relation to bedrooms and bathrooms as different uses of the space will appeal more to certain types of buyers and so mean a different likely asking price.

3. Preservation of the property: Has the property been well-preserved? Inspect the state of the building materials, the flooring, windows, plumbing, heating etc. If it’s in poor condition, it ought to cost less, but things like air conditioning can raise the asking price if it’s in a hot area where it’s in high demand.

4. Age of the property: Properties depreciate over time, so older houses may be cheaper. Indeed, a property will be 15% cheaper after 5 years and 70% cheaper after 50 years. However, recent renovations to the property will negate these stats and increase the property price.

The lazy way to valuate a property

5. Use a price estimator: Another way of valuing a property is to use a price estimation service, like the one available on our website in Portuguese or through an estate agency. For a nominal fee, the automatic system or estate agent will use the property details and comparisons with similar local properties to estimate the sale and rental prices of the property over time, saving you all the legwork.

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