Do you know which factors influence the price of a property? The three most important criteria of a property are 1. the location, 2. the location and 3. the location. It is often said that a property should be offered at a value in line with market conditions. However, this raises the question of which factors actually have an influence on the market value? As properties are known to be im-mobile, location really does play a very big role in valuation, as it is a criterion that cannot be changed.
Macro-location
First, the macro-location is assessed. The macro location includes the island of Mallorca with its accessibility as well as the zones: Palma, Palma environs, south, southwest, southeast, northeast, north, northwest and centre of the island. Each zone has its pros and cons in terms of infrastructure, which are included in a property valuation.
Micro-location
Next, the micro-location is evaluated, for example: access, infrastructure in the immediate vicinity, direct neighbourhood, orientation in relation to the points of the compass, sometimes the position of the sun in summer and winter, in the case of flats, the storey, etc. In the real estate industry, a distinction is often made here between 1-A locations, 1-B locations, 2-A locations, etc. It is not only on a Mediterranean island that the view from the property plays a significant value factor. Not all sea views are the same and not all landscape views are the same. There are numerous gradations.
Size, year of construction and furnishings
In the next step, the size (living space, usable space, ancillary areas, plot area) and, of course, the year of construction of the property play a role, as well as the modernisations that have already been carried out. In addition, there are numerous other evaluation criteria: furnishing of the property (quality of windows, doors, tiles, facade and roof), pool yes/no, lift yes/no. Technical installations and their age: gas, water, heating, air conditioning, electricity wiring, etc. The overall condition of the property plays a role. As an estate agent, we distinguish between new, as new, first occupancy, well-maintained, not well-maintained, in need of renovation, in need of refurbishment, etc. The condition of the property is also important. Last but not least, the room concept has an influence on the value of a property.
Price fluctuations
Similar to the stock market, the real estate market is also subject to fluctuations due to financial and world politics. Conclusion: A property is worth as much as a buyer is willing to pay for it at that moment. We value about 150 properties a year, have a trained, objective eye and know the prices actually realised. We would also be happy to value your property objectively and in line with the market.
As you can see, there are several factors that influence the price of a property. Do you have any questions on this topic? Then please contact us. We will be happy to advise you!