{"id":6434,"date":"2018-08-22T16:10:57","date_gmt":"2018-08-22T14:10:57","guid":{"rendered":"https:\/\/cbpropertybrokers.com\/?page_id=6434"},"modified":"2023-03-24T17:43:29","modified_gmt":"2023-03-24T16:43:29","slug":"how-to-value-your-property-for-resale","status":"publish","type":"page","link":"https:\/\/cbpropertybrokers.com\/how-to-value-your-property-for-resale\/","title":{"rendered":"How To Value Your Property For Resale"},"content":{"rendered":"

[vc_row][vc_column][g5plus_heading title=” How To Value Your Property For Resale”][vc_empty_space height=”20px”][vc_column_text]<\/p>\n

How We Value Your Property For Resale In The Market<\/h1>\n

Calculating the\u00a0 price on your own villa or apartment is a very emotional thing<\/p>\n

There are some objective ways to give you an indication of\u00a0 your property value.<\/p>\n

As general rule of thumb this method is a general valuation, without taking into account a number of extras such as sea view, 100% privacy etc …<\/p>\n

Valuation Methodology For A Resale Villa<\/h2>\n

Through the order of Spanish\u00a0 architects we request the average sales price of the last villa sales this year. This average price is the selling price where villas of + 500K and sales below 100K are retained.<\/p>\n

For the local region the following prices are recognised (July 2018)<\/h3>\n

ALFAZ DEL PI\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.767\u20ac\/m2<\/h3>\n

LA NUCIA\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a01.552\u20ac\/m2<\/h3>\n

ALTEA\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 2.146\u20ac\/m2<\/h3>\n

If the price in your head deviates a lot from this objective valuation, it is good to ask yourself … why? Keep in mind that these m2 prices are average prices. There are in some cases villas sold in Alfaz Del PI for 2.000\u20ac\/m2 with new bathrooms, new kitchen, sea view and 100% privacy. Also included in this average price range are villas from 1960 – 1970 maybe for 1,300 \u20ac\/m2. This is due to the need to renew everything. The old aluminium windows with single glazing, no heating or air conditioning, orange flower motifs in the bathroom and kitchen and a pool in old-fashioned white square bathroom stones of 10×10 … .etc if this is the case maybe demolition and Rebuild Is In Order<\/p>\n

A well-priced resale villa has double glazing, central heating everywhere, air conditioning in the bedrooms, a modern swimming pool with mosaic, a garage, a modern kitchen, 3 bedrooms and 2 bathrooms and preferably 180m2 in size on a plot of roughly 1000m2.<\/p>\n

A second way of calculating an indicative sales price is to ask the question \u00a8 For how much could I rent this villa to tenants? Know that there is a relationship between the rental price and the purchase price. As far as rental yield or inversion is concerned a minimum of 5% is considered appropriate<\/p>\n

Example:\u00a0 Purchase Price Of \u20ac 300,000 as investment, you need as a minimum at least 5% gross return ( Rent)<\/p>\n

300,000 \u20ac x 5% = 15,000 \u20ac: 12 months = 1250 \u20ac rent per month. Is this a realistic rent I could ask for this villa?<\/p>\n

So if we apply both calculations to a second-hand villa of 180m2, we find\u00a0 the following results<\/p>\n

ALFAZ DEL PI\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1767\u20ac\/m2 x 180m2=318.000\u20ac\u00a0\u00a0 rent = 1325\u20ac\/month<\/h3>\n

LA NUCIA\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1552\u20ac\/m2 x 180m2 = 279.360\u20ac\u00a0\u00a0 rent= 1164\u20ac\/month<\/h3>\n

ALTEA\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 2146\u20ac\/m2 x 180m2 = 386.280\u20ac\u00a0\u00a0 rent= 1609\u20ac\/month<\/h3>\n

Valuation for a resale apartment<\/h3>\n

For an investment in a resale apartment, the 5% rule actually applies even more for apartments than for villas. This is because apartments are bought much more as investment property to generate ROI (Return On Investment with rents<\/p>\n

With the same method we will now do the valuation for an apartment of 90m2<\/p>\n

ALFAZ DEL PI\u00a0\u00a0\u00a0 1926\u20ac\/m2 x 90m2 = 173.340\u20ac<\/h3>\n

rent = 720\u20ac\/month<\/h3>\n

LA NUCIA\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1553\u20ac\/m2 x 90m2 = 139.770\u20ac<\/h3>\n

rent= 580\u20ac\/month<\/h3>\n

ALTEA \/ALBIR\u00a0\u00a0\u00a0 2286\u20ac\/m2 x 90m2 = 205.740\u20ac<\/h3>\n

rent= 850\u20ac\/month<\/h3>\n

As a seller, one can ask the question, why would someone buy my apartment, if the (rent) yields only reaches a 3%? Do you know what the rents are in your neighbourhood? If the seller wants \u20ac 200,000 in La Nucia, but the average house<\/p>\n

rental price is only 500 \u20ac in the neighbourhood, then the gross ROI gives a 3% return!? From this 3% ROI you still need to pay the community fee and property tax!<\/p>\n

Or the rent is to low, or the sales price is to high! You can choose…<\/p>\n

Conclusion: Average values \u200b\u200bare what the name says. If your asking price is higher than this average price in Altea, Alfaz del pi or La Nucia, wonder why? It could maybe have a good reason. Is your estimate based on emotion or is it based on facts! If you want to sell a house, and you want an honest market price, let yourself be advised by people with experience that do not hide behind emotion and are people that\u00a0 give you straight commercial facts[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][g5plus_heading title=” How To Value Your Property For Resale”][vc_empty_space height=”20px”][vc_column_text] How We Value Your Property For Resale In The Market Calculating the\u00a0 price on your own villa or apartment is a very emotional thing There are some objective ways to give you an indication of\u00a0 your property value. As general rule of thumb this method […]<\/p>\n","protected":false},"author":22,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"class_list":["post-6434","page","type-page","status-publish","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cbpropertybrokers.com\/wp-json\/wp\/v2\/pages\/6434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cbpropertybrokers.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/cbpropertybrokers.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/cbpropertybrokers.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/cbpropertybrokers.com\/wp-json\/wp\/v2\/comments?post=6434"}],"version-history":[{"count":1,"href":"https:\/\/cbpropertybrokers.com\/wp-json\/wp\/v2\/pages\/6434\/revisions"}],"predecessor-version":[{"id":15022,"href":"https:\/\/cbpropertybrokers.com\/wp-json\/wp\/v2\/pages\/6434\/revisions\/15022"}],"wp:attachment":[{"href":"https:\/\/cbpropertybrokers.com\/wp-json\/wp\/v2\/media?parent=6434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}