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How the value of a property is determined

Whether you want to sell a property or want to buy it, have a sense of how your cost is determined, gives you control over your assets; It also gives you security in case you want to make a transaction with it.

Knowing the way in which a property is valued is important, so we explain what are the factors that are taken into account to define the cost of a property.

Among the main aspects are:

Location: It is the most determining factor in the cost of a real estate. The price of the square meter (both of the surface area and the built area) varies depending on the entity where it is located, the demand that the area has, the density of the population and the degree of development that exists around it. It is in this factor that the rules of supply and demand are obeyed.

The surface: The total area of your property is differentiated between the covered and uncovered surface, determining how much construction is inside a land and what is the area -if there is one- that could be exploited even more.

The environment: The services inside and outside the property (electricity, water, green areas, etc.) count a lot. Nearby shopping centers, adjoining buildings and proximity to important transport routes also influence the cost of your property. It can even be considered if it is in a corner or in the middle of the street, if the latter is wide or narrow, if it is flat or has slope, if it is an avenue or is a closed one with surveillance.

The construction: At this point touch aspects such as the age that has the building of the property and the strength that it has. Likewise, it takes into account the finishes that all the good has, the materials that were used and the quality of these.

The functionality and view: In some cases it takes into account the natural lighting that your property has, the views it offers, the general internal distribution it has, the orientation of the house and the functionality of spaces such as corridors and stairs.

Type of property: Although the cost per square meter is defined more by the area where the property is located, said price also varies if it is a house or a department. Also, in case of having an apartment, the square meter of a building that does not offer any amenity will be completely different to a condominium that has roof garden, gymnasium, and so on.

Installations: In any building, the age directly affects the electrical, water and ventilation installations; over time these deteriorate requiring repairs, not doing them can directly impact the final cost of a home. The state of doors, windows and paint is also qualified. In addition, if you have the technologies that are currently available (for example: a solar light installation) it is also taken into account when making an appraisal.