The General Director of Agency of real estate Point Estate Timur Saifutdinov said “Elite.RU” three methods of assessment of residential property
The valuation is extremely subjective. Criteria very much. This accessibility and infrastructure, and the environment. Even two apartments of the same area in a single residential complex, difficult to compare. For example, what is more expensive: apartment on the second floor with a good repair or equivalent with a finish that leaves much to be desired, but on the fifteenth with good specific characteristics? And if the first version of Windows that overlook the Park and the second – on a highway or a nearby skyscraper? An additional problem is the real estate market of Moscow is rarely in a stable state: a dozen years there have grown, and in recent years – are falling. How to understand that the cost of the apartment is fair? The General Director of realtor Agency’s Point Estate Timur Saifutdinov said “Elite.RU” on the methods of assessment of residential property.
Between heaven and earth
– There are three methods of real estate valuation: income, cost and comparative. The first proposes to estimate the cost of an apartment on the basis of profit, which you can obtain by renting it out, taking into account depreciation. However, in our reality, this method is not always objective, since the income from rental property in high price segments may be 3% and low – 5%. Because of this, the error in the rating exceeds 60%.
Extra charge for floor and specific features 20-30%
According to the cost method, the price of an apartment is determined on the basis of the costs incurred by the owner in her buying and decorating. But honestly, today’s buyers really don’t care about the costs of sellers. Therefore, the only method that has a right to exist, comparative, allowing an objective and adequate assessment of the value of the property. It is used by most professional market participants.
We give a simple example. We need to evaluate the apartment on the 10th floor of a 20-story building. For this study all the offers for sale in this residential complex, paying attention to the floor and the quality of repair. If sq meter apartment on the 3rd floor without repair costs 500 thousand rubles, and in the apartment on the 20th floor with the best view characteristics – 700 thousand rubles., then it would be wise to sell our flat for 600-650 thousand rubles per square meter.
For a comparative approach, it is desirable to find at least 3-4 analogs
In the calculations it is necessary to consider that the margin for the floor and specific characteristics reaches 20-30%. And the cost of repair is “turnkey” is usually from 1.2 to 2 thousand euros per square meter (at current exchange rate) depending on the quality of finishes and materials.
Looking for analogues
– Another option. For example, the house sold only one apartment. Then the broker searches for the same (class, format, number of apartments, the level of infrastructure, availability of security etc.) residential complex, located in the same area. He then chooses the apartment with the most similar characteristics. And if none are found, make corrections to the prices of properties are on offer.
Usually take into account:
• floor apartments (the higher, the higher the margin, as we have said, is 20-30%);
• specific characteristics (Windows, overlooking a quiet courtyard, provide an appreciation of 5-10% in comparison with Windows on the noisy street and the view of the unique historical object, such as the Kremlin or the Cathedral of Christ the Savior, can add 20-30% to the cost);
• the size of the apartment (the larger the area, the lower the price per square meter);
• the level and detail repair.
You need to pay attention to how long the lot on display in the market
For a comparative approach, it is desirable to find at least 3-4 counterparts. The competent broker can immediately see the so-called “outliers” – that is, apartments that stand out sharply from the common pool of offers that are too high or too low a price, for no apparent reason. Such housing in the comparative analysis to take into account not worth it.
In addition, you need to pay attention to how long the lot is exhibited in the market – this may indicate an inflated price or deficiencies in the apartment. In the end, the subject of the comparison, determine the optimal price for “our” apartment, which is close to the market.