Re: Re: Should I wait to sell?

#101186

adiep
Participant

@inez wrote:

Ethnatkev

Hi there. To help with valuation, the way we do it is to use the going local rate per sqm. Write down your plot. Deduct the built area including terraces. Whatever is left you can use 100€psqm to work out the ‘price’ for the land. Then work out the internal area of your property and multiply that by the going sqm rate for your area. For garages/storerooms/basements use 50% of build price (if they have a window, 1/3rd of not), terraces use 1/3rd. Add it all up and that should give you an approximation of bank valuation. Then deduct 40-50% and that should give you the region of the selling price.

It may not be pretty but at least you will have a point where you are opening yourself to finding a buyer. Whether or not you will accept that price – and bear in mind you will still have an offer placed on it – is up to you.

There are buyers out there but mainly lifestyle and long term investors. The speculator market has gone, most buyers are cash or if they need finance the banks tend to grab them for their own properties. Some are still getting finance but foreign buyers should count on putting 40-50% of the total price into the pot (including purchasing costs) and will have to be very clean with few buy-to-lets in their portfolios.

Good luck!

Inez, that valuation method only works if properties are selling at the local valuation prices. If they are not, then the valuation are clearly too high.

A good way to find the price, is to keep dropping it until you start to receive enquiries. This is what you have to do in a bear market to sell any asset. Its called “price discovery” and efficient markets use it extensively – that’s why you have falling prices.

Of course, if you have a theoretical notion of how much its worth and dont care about waiting an undetermined period to sell, then use your own valuation, however true price discovery will give you the reality and sell the place a lot quicker.