appraised value of home | How to fix the price of a house

How to fix the price of a house



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If like an apartment, location is one of the key criteria to evaluate the price of a house, other elements are paramount as recalled by several players in the real estate market. The land, the surface of the house and its general condition affect the market value of the property.


© Serge Gautier Houses
A plot at the right size
An area consistent with that of housing. More than a land, it is above all its surface that can impact the valuation of the house. A luxury house of 200 m², located in the Paris region, with a plot of 500 to 700 m², can be sold at the market price. "On the other hand, a smaller area would be penalizing for the sale," explains Philippe Taravella, CEO of Crédit Foncier Expertise.

Conversely, too much ground in relation to the surface of the house will not generate a rise in the selling price. "However, some parcels can be a source of added value if they are big enough to divide. Land from this division may be sold later for the construction of a house. "

The five key points to set the selling price of his house

The face to face.
The living space.
The state of construction.
The shell
The size of the land.
Not overlooked
Views management. "The absence of vis-à-vis is a major element for a house," said Thomas Leandri, notary in Bastia. "This is even more true for homes located in subdivision that are sometimes very close to each other. What is not the case of a beautiful plot of 1.000 m² that will hide the owner of his neighbor. "

In dense urban areas, some lands are encumbered by easement of right of way. Their owner has the obligation to allow their neighbor to access his plot to join the road. This easement is very common in plots located in the second curtain. This strip of land, not constructible, penalizes its use. This can cause a discount of 5 to 10% on the selling price of the house.

The surface of the house
Living space and floor space. The surface of the dwelling must also be examined when fixing the selling price. It is besides the habitable surface which must be taken into account and not the useful surface. "Unlike collective housing that must be the subject of a Carrez footage guaranteeing the living space, houses are not subject to any obligation in this area," says Jacqueline Monteil, who works in the evaluation department at the group De Particulier à Individual (PAP) since about fifteen years. "There may be a significant gap between living space and floor space. To sell, it is better to call an expert surveyor who will measure the house. This is all the more advisable as the buyers are vigilant. During their visit, they divide the price of the house by the living space to compare the properties. "

The state of construction
Evaluation of the consumption of housing. Since the introduction of the Energy Performance Diagnosis (EPD), housing sales have been mostly impacted in sectors where demand is not strong. Energy-intensive goods being penalized for the benefit of more economical houses.  A trend that is found in detached houses as recalled by Thomas Leandri: "The houses comply with the current thermal regulation - RT 2012 - are 5% more expensive than other properties. Buyers are looking for "green" homes that consume less energy. They want to save money. A trend confirmed by the Dinamic association that has sifted the impact of the energy performance of housing on the sale price.

The quality of the shell
The state of maintenance of the construction. In very tense real estate markets where goods are scarce, this state is not an essential criterion in price setting. "In these highly rated sectors where property prices are high, buyers are less attached to the internal state of the house, but rather to its architecture and the overall quality of its structural work," says Philippe Taravella . "Because they usually have a large budget to do important work to improve their comfort if it is necessary. On the other hand, in low-priced real estate markets, homes in good condition are generally preferred by buyers who do not have sufficient funds to finance works. "

Depending on the nature of the work to be undertaken, the bill may be more or less high. Count around 700 € per m² to redo the floor and wall coverings. A larger renovation including the improvement of insulation, plumbing, the change of windows on average will rise to € 1,500 per m². An estimate that varies according to the practices of artisans in your area.

A gross value to be determined
Databases of market values. This audit of the house completed, the estimate of the price of the property can be refined. Step one: Set a market value using different databases. Notaries use the Perval file, which lists all real estate transactions carried out by notary studies. They can thus determine a value by comparing similar properties that have recently sold. "The gross market value of the house will then be weighted according to its exposure, standing, condition and any work to be done, details Thomas Leandri. This value may be increased or decreased in reasonable proportions. "

Crédit Foncier expertise also uses the file of notaries as well as that of the numerous references collected by the employees of the financial institution. "Our job is to place the cursor of the price in the right place between the limits which constitute the references of transactions collected according to the strengths and the disadvantages of the good which we have identified", concludes Philippe Taravella.