Have you ever asked yourself how much your flat is worth? The best way to know the answer is to ask for an expert´s valuation regarding your flat. However, there are some indicators which can give us a clue. In this article we will mention some of these indicators and we will analyse how they can influence and affect the final value of the property. If you do not wish to hire an expert´s valuation you can calculate the price free of charge by means of some online portals. Nevertheless, these inquiries are for guidance only and they are not always reliable. Furthermore, they cannot be used for legal purposes as the Spanish law states that if you take out a mortgage it is compulsory to hire a professional to undertake a complete valuation of the property. In order to carry out this task, the valuer must first of all make an in-depth study of the flat so as to be able to value it. The valuer will start by getting a local authority search done, because this document will show the current situation of the property: who its legitimate owner is, a description of the property, its location… You can apply for this document in the Land Registry.
THE LOCATION: A KEY FACTOR
There are several factors which determine the value of a flat. The most important one is its location. We must stress the fact that the property which is located in the cities which are most in demand, such as Madrid, Barcelona, San Sebastián and Ibiza is more valuable than the one located in other parts of Spain. Apart from this, we must highlight once again, that the location will always determine the market value of the property. A few weeks ago, we wrote about property in the centre of Madrid. In that article, we mentioned that as property there is in great demand, it is extremely difficult to purchase a flat in that area. If your flat is located in the central area of a city, the value will definitely rise. Regarding Madrid, a buyer will take into account if the flat is close to a Metro station. However, it attracts our attention that this fact is not important nor relevant if the property is located in the centre of a city. Just by being there, the price is much higher than the property which is located on the outskirts. Another fact which buyers also bear in mind is having a school close to the property. The houses which have a school within a radius of 500 meters, increase the value by 5% over property which is further away.
The price of the property is also determined by its orientation and the quality of the building materials, especially if the house has recently been refurbished. We must also add that a high floor with a lift is more in demand than a low or ground floor. This is due to the fact that it will undoubtedly have more light and less noise. If the building is Leed-Certified, this will also increase its value. In any case, the final price will be set by the market and the law of supply and demand. Apart from everything we have mentioned, the important issue is the demand that exists in a particular area as well as the price of similar houses there. Therefore, we should find out the price of other houses in the area to have an idea.