Why is a professional valuation essential for a successful real estate sale?

When Karl T. wanted to sell his property after almost 40 years, he naturally already had a rough idea of its value. On the one hand, he knew exactly how much it had cost at the time and, on the other, he had always followed the price trends on the real estate market in recent years. So he offered his property at the price he thought was appropriate. When no interested parties came forward after weeks despite the high demand, he was at a loss. Although the property was still in very good condition, no one wanted to buy it.

As no interested parties came forward even after almost two months, Karl T. contacted the VON POLL IMMOBILIEN Bayreuth office. He explained how he had come up with his asking price and wanted to know why his advertisement was not having the desired effect. "Is there something wrong with my property? The demand for real estate is still high despite coronavirus, isn't it?" he asked. But the fundamental problem is not the demand, which may have been influenced by the pandemic. When assessing the value of a property, a clear distinction must be made between the emotional value and the real value!

The emotional value

Although we only knew his property from the photos in the advertisement at the time, we immediately noticed that the price was too high. Karl T. was initially very surprised at our quick recognition of the problem. However, emotions and memories played a major role in his asking price. Understandably so, as he had spent most of his life in this property. When we explained to him what really matters in a professional property valuation and how many factors there are to consider, he quickly realized that a private sale is a rocky road. When he found out about our service for a professional market price assessment, he asked us to carry one out on his premises.

The real value

The property was very well maintained and had only been renovated a few years ago. There were hardly any real defects and the location was ideal for families. While we took a closer look at the available documents, we paid particular attention to the following: How large is the plot and how much living and usable space is there? Does the property have a right of residence? What is the land value in this area? Is the property located on a busy main road? All these values were included in our valuation. As the property had several extensions, it was too individual to be valued using the comparative value method. We therefore determined the value using the asset value method. When we then suggested a suitable marketing strategy, he agreed to it immediately.

As the property had been for sale for almost two months, it was already well known to people looking for real estate. Such cases can quickly become problematic, as many prospective buyers become skeptical when a property is offered at a lower price after some time. They then wonder whether the reason for the sudden price reduction is a defect in the property. Once Karl T. had convinced himself of our expertise, he commissioned us to sell his house. We took care of the marketing and managed the viewings. Two months later, the property was sold. After signing the purchase contract, a happy Karl T. told us:

"I wish I'd had my little house professionally valued by VON POLL IMMOBILIEN straight away!"

Are you planning to sell your property? The team at the VON POLL IMMOBILIEN Bayreuth office with its real estate agents (IHK) and office owner Mark Beyer, a certified independent expert for real estate valuation (PersCert®), will provide you with a professional market price assessment and a tailor-made marketing strategy for your property.

You are also welcome to use our online property valuation service:

Further information can be found here:

https://www.bmi.bund.de/DE/themen/bauen-wohnen/stadt-wohnen/wertermittlung/wertermittlung-artikel.html

https://de.wikipedia.org/wiki/Wertermittlung

https://de.wikipedia.org/wiki/Sachwertverfahren

Notes

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

Photo: © Julietart/Depositphotos.com