When do I need a property valuation?
When it comes to the value of a property, opinions about the 'right' price can vary widely. A property valuation often proves beneficial for everyone involved. Find out in which situations you need to know the value of your real estate.
In which situations is a property valuation useful?
Knowing the exact and current value of a property is not only important when buying or selling but also, for example, in cases of early inheritance or when determining the insurance sum. The following list outlines the key situations where a valuation is beneficial:
- Buying and selling: A valuation provides a benchmark for price negotiations.
- Inheritance or early inheritance: The current property value helps ensure fair distribution within an inheritance community and determines any necessary compensation payments.
- Divorce: To fairly divide joint assets or determine the value for a sale following a divorce.
- Budgeting for tax calculations: The imputed rental value and other taxes are based on the property's taxable value and can be planned in advance with a valuation.
- Determining the insurance sum: To ensure full coverage or avoid overinsurance, the insurance should be aligned with the property value.
What do the different terms for property valuations mean?
Property valuations often involve many terms that sound similar but describe different things, which can lead to confusion. To help you stay informed, here’s a brief overview:
- Market value: The valuation of a property based on the average value of properties with comparable location, size, and condition.
- Real value: The valuation based on the new construction value of a property and the current land value, minus depreciation due to age.
- Capitalized income value: The valuation of a property as an investment object, based on rental income and expected returns.
- Loan-to-value ratio: The value up to which a lender will secure a property with a mortgage. In simple terms, this corresponds to the maximum mortgage amount.
- Insurance value: The value estimated by the insurance company, which they would pay in the event of total destruction of the property (excluding the land value).
What factors determine the value of a property
A property valuation often takes place before buying or selling real estate. It is crucial to set a realistic price for a house or apartment right from the start, as this is influenced by many factors – most importantly, the location of the property.
Properties in poorly connected regions can be worth up to 50% less than comparable ones in central locations simply due to their location. Other factors include the year of construction, the size of the living area, as well as the number of rooms.
The challenge in property valuation lies in the fact that properties are not always directly comparable. Even two adjacent terraced houses are never identical, as renovations and the quality of interior finishes can also impact the value. Neglected building maintenance and restrictive conditions.
Property valuation: online or by a professional?
An online property valuation is a quick, easy, and free way to determine the value of a property. Online tools provide estimates for most properties that are accurate enough to serve as a benchmark for price negotiations, for example.
With the valuation tool from ImmoScout24, you can enter the key details of the property and compare it with a suitable reference property in the area.
It relies on the IAZI database, which contains over 25,000 properties across Switzerland. Its advanced calculation model determines a reliable property value, which is sent to you immediately via email in a detailed report.
For a more thorough assessment and on-site consultation, you can have a professional property valuation conducted by an expert. This is especially useful for properties with an exceptional standard of finish or in unique locations.
How much does a property valuation cost in Switzerland?
The most affordable option is, of course, using free online tools such as the property valuation from ImmoScout24. However, if you want a more precise valuation, you will need to invest some money: You can request a more detailed online valuation from specialized real estate companies. These typically cost a few hundred Swiss francs.
Alternatively, you can hire an expert to thoroughly inspect the property on-site. While this can cost several hundred francs, and you’ll need to organize the appointment and inspection, it is not a significant expense compared to the overall purchase or sale price of most properties in Switzerland. It’s definitely worth it to play it safe here.
