What is it and why is it important to do an appraisal before selling a house?

Whether you are homeowners or real estate agents, conducting an appraisal before starting a real estate operation real estate sale it is essential.

The importance of this step lies in the fact that if a very high cost of a property is established, without an appraisal, the sale time could be extended, since it is not attractive to buyers; On the other hand, if the price of the house or apartment in question is very cheap, it would imply a financial loss.

According to BBVA Bancomer, a real estate appraisal it is an “official document that indicates the real value of the property considering its internal and external characteristics”.

This document is issued by a certified expert and is the most effective official way to know the real price variation of a property based on different factors related to everything that said home offers.

In addition, this document is not only used to determine the value of a house, but also to establish the cost of deeds, taxes and notary fees in the case of a sale.

It is worth mentioning that there are different types of appraisal:

• income appraisal: to calculate the value at which the property could be rented.
• physical appraisal: determines the construction value of the house.
• commercial appraisal: considers the previous two, as well as the value of the properties of the zone.

The most important factors when assigning a value to a property are:

• Square meters of construction and land
• Construction material and finishes
• Property location
• Type of land use
• State of conservation and age
• Service installations such as gas, electricity and water
• Accessibility and public transport
• Shops and services near the property

Steps to calculate the value of a house for sale

It is always recommended to contact a professional when selling a house or apartment; however, the Inmuebles24 platform shared some steps to have an approximate calculation of the value of a property:

1. Know the property. According to the platform, it is important to have a document on hand that contains data on: type of property, square meters of construction, years old, number of floors, height, area, parking spaces, number of bathrooms, pool-type amenities, gym, etc.
2. Get market information. Either directly or through digital portals, you should investigate and find a couple of dozens of other similar properties for sale.
3. Compare. From the information obtained, make an average between the three most similar to find a possible value of the property to sell.

As an extra fact to take into account, Inmuebles24 added that, if the house needs remodeling due to deterioration, it is likely that the sale value is below average.