Index
The real estate appraisal is a fundamental step in determining the value of a home you have decided to sell or want to buy. It not only serves to establish the starting price of the sale, but also serves as a form of protection to ensure that that price is fair and in line with the market average.
To establish the value of the property, it is necessary to proceed with a series of considerations on some fundamental factors, such as:
- the size in meters pictures;
- the location of the house;
- the type of property based on the cadastral category;
- the overall structural and aesthetic conditions and any need for renovation work.
To evaluate all these aspects, we turn to qualified professionals who issue an appraisal report.
Do you want to better understand the parameters that determine the value of a property? We at Casavo have prepared a short guide that will clarify how real estate valuation works and which factors influence it.
The valuation per square meter
The dimensions are the most important element in establishing the value of a property. The final valuation of a house – both for the purchase and to determine the rent of a rental contract – depends on its size in square meters.
The actual value of the single square meter is not established arbitrarily, but on the basis of precise tables drawn up by the Revenue Agency.
The cadastral category of the property
A second central factor in evaluating the value of a property is the cadastral category, because it also determines the income and property taxes to be paid each year.
The Group A of the table of fixed categoriesfrom the land registry collects all the buildings intended for residential use. In this group, it is clear that stately homes, villas and castles (categories A1, A8 and A9) have very different starting values than, for example, affordable or popular housing (A3 and A4).
How location influences the value of a property
The square footage and cadastral category of a house are not enough to calculate its final value. To arrive at a complete property valuation, it is also important to know the geographic area and location.
The Real Estate Market Observatory (OMI) of the Revenue Agency establishes different calculation coefficients based on the city and area in which the property you wish to sell or buy is located. An apartment in the historic center of Rome, for example, will have a different OMI coefficient than a property of the same size on the outskirts of Pescara.
Calculating the value of a property and the merit coefficients
To find out the valuation per square meter, you simply need to multiply the total square footage by the value indicated in the OMI tables available online. The resulting figure will then be adjusted based on some corrective coefficients, such as:
- the floor on which the house is located;
- the rental status of the property;
- the heating system;
- the exposure and view.
These parameters lead to a fluctuation in the final price ranging from 2 to 20 percent.
The floor on which the house is located
The first type of coefficients are those based on the floor. The coefficients are as follows:
Property location Impact on price Basement floor -25% Ground floor or mezzanine floor -10% if it has a garden, -20% without First floor -10% Second floor -3% with elevator, -15% without Third floor 0% with elevator, -20% without Upper floors +5% with elevator, -30% without Top floor +10% with elevator, -30% without Penthouse +205% with elevator, -20% without
The rental status of the property
A second type of coefficients concerns the state of the property. Vacant homes have a coefficient of 100%, rented homes a coefficient of -20% and, in the case of seasonal rentals, a coefficient of -5%.
The heating system
Another evaluation factor concerns the provision of a heating system. In the case in which it is independent (+5%), centralized (0%), centralized with metering (+2%) and absent (-5%).
Exposure
The last coefficient to take into consideration is the exposure and the view. For external panoramic views (+10%), external (+5%), internal (-5%) and completely internal (-10%).
The condition of the home
A final central factor not to be overlooked is the structural and aesthetic conditions of the property. Based on the correction coefficients we mentioned previously, the state of conservation of the property affects the valuation in this way.
Type of home Impact on price House to renovate -10% on the price House in good condition 0% on the price Renovated house +5% on the price Finely renovated house +10% on the price Newly built house +15% on the price
In addition to whether or not renovation work is necessary, you will also have to consider the overall age of the building. Perfectly maintained historic buildings will have an upward correction, while properties in poor condition will have a downward correction.
Who should you have your house appraised by?
As you can see, behind a property appraisal there are many factors and parameters that influence the final value. To establish the price, you will need to turn to a qualified professional who will gather all the information and organize it for you. Consultations of this type require time and money, and can slow down your dream of selling or buying a home.
Casavo makes everything easier. Just try our online valuation tool to receive an evaluation:
- free and in real time;
- the most precise on the Italian market, thanks to the sophisticated algorithm we have perfected - and continue to perfect - over the years;
- which identifies and takes into account the characteristics that positively or negatively impact the value of the home; We are the only ones with this feature;
- which offers you a list of properties similar to yours that have already been sold for an even more accurate comparison.
If you are trying to sell your home and your property is located in one of the cities where we operate – Milan, Rome, Turin, Bologna, Florence, and Verona – you can also receive a formal purchase offer directly from Casavo. After the free online valuation, one of our experts will contact you to schedule a viewing – even remotely via our app – and proceed with any technical appraisals.
Casavo gives you the freedom to independently choose the best solution for you: it allows you to test the market for free and with no obligation, to discover how many potential buyers are really interested. After the initial evaluation, you can decide to rely on Casavo to sell your home, stress-free.
Choose the advantages of Casavo and sell your home now.
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