What gives value to a property?

 
There are many variables that intervene in the value of a property such as typology, location, state of construction and maintenance of the unit, among others. As  a real estate agent it is important that you know what are the variables that can be improved, thus increasing the price of a property.
Some characteristics are weighted above others to define a closing price of a property, for example, square footage and location are two factors that determine a base price. A three bedroom apartment  in the centre of Torreviejawill always be more expensive than the same type of property  in an inland town in the province of Alicante, for example. To get the 
most economic return possible to a property you canmake changes that do not require a large investment of money. Among thesechanges are,  putting in conditions the water stopcocks, improving the lighting of the house or painting all the walls white, key issues to easily sell a property.
If youwant to know how to calculate the price of a property, how to increase its value and offer the best appraisal to your client, to whom we tell you everything you need to know with concrete examples so that you know how to identify everything that can be improved in a property. 
 
 

How to calculate the value of a property?

The value of a property is obtained through real estate appraisal.  Through this processyou can calculate the sale value of a property, taking into account the characteristics mentioned above: location, type of property, state, among others. 
In order to calculate the value, it is important that you know the closing prices of the neighborhood in which the property is located. You have to know how much per square meter costs in the area and,  also, the list value and closing price of comparable properties you find.
The best way to obtain a reference price is to use the comparable appraisal method, where you have to find a property that shares the same or similar characteristics to those of the property you are appraising and see at what value it is published.
From your place of real estate agent it is important that you explain to your clientthe  differences between the list value, estimated value and closing price, so that he knows how much net money he will get from the transaction.

•   The list value is the amount at which the property is published to sell, although, many times it can be sold below that value.  
   
• The estimated value  is  the value  close to the list value. If this is 82,000  a possible negotiation could be between € 80,000 or € 77,000 and that is the money they should expect before that possible negotiation.
   
• The closing price is  what matters: it is determined by the negotiation between both parties (seller and buyer) and by the amount of money that your client will finally get for the sale of his property. 

If the publication value of the property is below the expectations of your client, how can you recommend small reforms or strategies to increase the value of it.  Some of these renovations consist of investing money, but you will still recover it at the time of selling the property.
 

What characteristics modify the value of a property?

 
Each property is different: from how the environments are distributed, the functionality of the spaces, the age of the construction,  the amount of natural light it has, all that affects its price. A bedroom of 50 square meters and  a two bedrooms of  the same size will not be worthpraying in the same way, so it is important that you know what characteristics increase the value of a property to be able to enhance them.
There are external variables that are not modifiable and directly affect the value of the property. Among them are the location of the property, the façade, the age and the state of the construction.

What external variables intervene in the value of a property?

Within these variables is the area in which the property is located. In the same neighborhood  there are streets and  blocks that are better positioned in the market than others, due to whether there are special neighbors, the state  of the lighting and  the environment of the area. These are issues that directly affect the price. 
An example of this is that a three bedroom located next to an area with few resources is evaluated below a  comparable housing in any other neighborhood with good services.
Among the external variables that are not modifiable, unless it is a house and they want to demolish it to build it again, are the age of the property, the quality of the construction and the façade. 
In case of being a house, the exterior can be modified with a coat of paint and putting the doors and windows in condition. This will raise its price, especially since the first impression of the potential buyer when making the real estate visit will be positive. But it is the only thing that can be solved easily and quickly.
In a building this is not possible, and the state of the common spaces also modifies the value. If the unityou want to sell is in excellent condition, but the  elevators are old and  the entrance looks abandoned, its price will be below an apartment in a new and modern building.
 

Unchangeable features that increase or decrease the value of your property

The type of property, associated with the square meters it has, is the first price indicator. The biggest price is the houses, since they offer versatility to the buyer: you can build on the land, add rooms or demolish it and start again. 
As for functional units within horizontal properties or buildings, it does not matter only the amount of square meters they own and their distribution, or the state of the common areas. Youhave to  explain to your client that the height of the construction and the view of the property are characteristics that intervene in its value. 
The point of height is related to sight.  If the windows overlook the center of the block, another building or a wall, it will not be a highlight of the apartment.  In the latter case it also depends on how that affects the entry of sunlight. On the other hand, if the view faces a park, an illuminated square or the street without elevated buildings in front, the value of the unit will be above average. 

How to increase the value of a property?

If your client wants to increase the value of his property to sell it at a higher price, there are some issues that can be modified so that the property is in the best condition. As  a broker you can  advise what improvements you  would need through a Home Staging report  and accompany you during the process, giving you the contact of different suppliers that can make them. 
The sale value of  a  brand new property is higher by almost 50% compared to a similar property  but in poor condition.  This is why it is important that your client can put the property in conditions prior to its appraisal, publication and real estate visit.  The newer your property looks, the greater the economic  benefit you will get.
The functionality of the spaces is what gives value to a property, so the first improvements have to be aimed at improving the most used spaces in the home: the bathroom and kitchen. In these areas it is important that the faucet is not worn, it can be changed without having to allocate a lot of money. In the bathroom it is also possible to give a renovation to the sink, toilet and bathtub by painting them white. 
For the kitchen it is essential to have a  comfortable countertop and plenty of storage spaces.  If there are no cupboards or under counter, it is time to invest in them. It can be made of pine, an accessible material that does not require a significant investment and can transform the place. In general, storage spaces are necessary in all houses, so if there are no cabinets in the rooms we recommend you acquire them from that same material.
If you are looking to increase the value of any property without spending a lot of money youcan improve the lighting of it. Beyond taking advantage of natural light, it is important to look at which places the sun does not give to be able to supply it with artificial light. For example, under the cupboard you can place a LED strip for direct lighting on the counter and kitchen. We advise you that there are no cables in sight at the time of making the real estate visit, as it gives a neglected appearance.  Use sconces where appropriate, don't leave bulbs hanging either!  Taking care of those details, the property will look of better quality.
Everything that the owner of the property solves will be things that the potential buyer will not have to worry about and the sale will not only be at a better price, but it will also be easier to negotiate because there will be no discussions about the quality of the property.
Following these recommendations to enhance the value of a property, you can  advise your clients so that they can sell their house at a better price. We suggest that you keep this information in mind when you are going to carry out a real estate appraisal, since right there youcan discuss it with the owner.