Valutare casa

What is the point of knowing how to value a house?

Being able to know approximately how much a house might be worth by observing the state of some factors that we will list later can help us essentially in two particular situations:

• when we want to buy a house, especially if we do not use the services of a real estate agency or experts in the field
• when we want to sell a house and want to know how much we could get for it, also trying to carry out some small renovations or improvements that can make it worth more.

Factors to consider when evaluating a house

To begin to understand the factors to consider when buying or selling a home—transactions that undoubtedly have significant economic and emotional implications—it’s important to understand the factors that influence the actual financial valuation of a house or apartment. These factors primarily include:

• type of house, whether detached or apartment
• geographical area where the house is located
• total square meters and cubic meters of the house
• presence of garages , internal parking , cellars , etc.
• condition of the external facades of the house
• internal condition of walls, floors, fixtures, etc.
• condition of the systems (heating, water, electricity, gas, etc.)
• added values , which can range from protection systems such as railings, to finishes in high-quality materials, to the presence of verandas, etc.

It’s important to understand that each factor has a different weight when evaluating a home, and that considering one factor alone, even if it’s very important, can often lead to misleading us. Only by combining all the factors can a true valuation be achieved.

Different types of homes: how to evaluate them

Naturally, the first factor, and a fairly significant one, that influences the final price of a house is its type.

Independent

In fact, if it is a detached house, its economic value increases, both due to construction costs and size, and due to the freedom that comes with it for the owner.

In row

If the detached house is part of a terraced house complex, its economic value decreases compared to the first case, even if the features it offers are similar.

Semi-detached house

If it’s a semi-detached house, it means there are two apartments. The advantages are that you don’t have to deal with the often-difficult relationships with other owners, but obviously you don’t get all the benefits of a completely detached home. However, given the construction costs, this type of property is also expensive, more than a condominium apartment and less than a townhouse.

Apartment

Finally, if the property in question is an apartment in a condominium, the price should be lower. This statement, however, isn’t always true, as especially in cities, the price of homes depends largely on their location. Often, there are no longer detached homes in the city center due to lack of space, but only apartments. However, given their geographic location, these can cost significantly more than a detached home on the outskirts.

Evaluate the location of the house

The geographic area where a home is located is one of the most important factors in determining its price. This factor is determined by several criteria:

• the territory on which it is built: plain, mountain, sea, etc.
• the tourist importance of the place
• the possible panoramic view
• the degree of proximity to the city
• the neighborhood , if the house is located in the city (peripheral, central, semi-central, peripheral but well-connected, etc.)
• the closest services : transport, supermarkets, leisure facilities, etc.
• frequenting the area: unfortunately, there is also a somewhat unpleasant human factor that weighs on the value of a house, because some categories of people (such as immigrants for example) are not considered pleasant and sometimes even dangerous, so the value of a house in an area frequented by them can drop drastically .

Naturally, the criteria that weigh most heavily when evaluating the location of a house are the neighborhood for a city, the panoramic position in a tourist location, and the transport services available nearby.

Often, for each geographic area, a “price per square meter” is calculated, which is the average cost of one square meter of home in that area. This is a fairly indicative price, but it can be affected by many of the other factors listed in this article.

Evaluating the surface area and volume of a house

Another factor that weighs heavily on the final price of a house is its size.

The most important and most evaluated criterion is the surface area of ​​the house, that is, the square meters.

This is an element to which we must pay attention, especially if we are buying a house and there are intermediaries between us and the owner: we must demand to know the difference between the walkable square metres and the total square metres of the house that is being offered to us.

Walkable square meters represent the total surface area we can cover while walking and which we can therefore organize and fill with furniture and furnishings.

The total square meters include the walkable square meters plus the surface area occupied by the walls, which can sometimes also be quite thick.

Therefore, be careful not to buy houses where the square meters we think are the walkable ones are actually the total ones.

Another important criterion for evaluating the size of a house is its volume , or rather its cubic capacity . The overall height of the house is important, because if it exceeds a certain size, the house can be used as a mezzanine. If it is below a certain value, meaning we are in an attic, it cannot be used as a full-height house.

Finally, the size of a house also includes the presence of balconies , terraces and gardens , which are counted as external square metres, as well as garages , cellars , etc.

Evaluating the attached surfaces of a house

If a home also has other attached spaces, it is obviously valued more economically. The garage is one such space, and since it is a very important element in preventing car or motorcycle theft, it adds significant value to the home itself. Having a parking space in a courtyard is important, although it isn’t valued as much as a garage, especially if you’re in a city where outdoor parking is scarce. A basement is another space that adds value to the home, depending on its size, as it provides additional storage space for objects, furniture, etc.

Evaluate the condition of the external facades of the house

This is a factor that weighs especially heavily on the final value of a detached house, townhouse, or semi-detached home, as the good exterior condition is then entirely or almost entirely borne by the owner who intends to renovate it. The exterior facade of a condominium is a relative factor: only if the condition is truly terrible can it impact the valuation of a home and also the impression a potential buyer might have of it. Generally, if the plaster and tiles show no significant visible damage, the exterior condition of a home is considered good.

If the home has balconies, terraces, or gardens, their condition can also impact the final valuation: flooring, railings, and balcony and terrace supports are important for ensuring safety and aesthetics. The condition of gates and entrances to homes, as well as the stairwell, especially in apartments, are also important: here too, paintwork, load-bearing structures, walls, and the condition of the steps impact the buyer’s assessment of financial, aesthetic, and safety considerations.

Evaluate the internal condition of the house

The interior condition of the home is another very important factor in determining the final price. There are several criteria for evaluating this parameter, namely:

• the condition of the floors
  , type of flooring, presence of cracks or swelling, presence of scratches, state of opacity due to wear, are all elements that count

• the condition of the walls
  , plaster and paint, presence of holes, cracks, leaks, mold stains, etc.

• the state of the sanitary
  ware enamel, its robustness and stability

• the condition of the window frames
  , whether they close well and therefore do not let drafts through, and whether they do not have scratches or unsightly damage

• the condition of doors and windows,
  the type of glass in the windows is a factor that weighs heavily (double glazing, bulletproof glass, reflective glass, etc.), functioning locks, well-functioning door and window closures, etc.

Furthermore, the general state of cleanliness of the various rooms in a house is also important, as it helps to better present the house: an unclean house immediately puts off the buyer.

Evaluating the condition of a home’s systems

A home’s plumbing and heating systems are another crucial factor. In particular, they must be in good condition:

• heating system
• electrical system
• water pipes

Each of these elements must have specific characteristics in order to be considered in good condition.

Heating system

A heating system increases the value of a home, especially if it’s independent and not centralized (in a condominium or a two-family house). Furthermore, it must be a compliant system, complying with Law 46/1990, with a boiler that has undergone all the required inspections and is not too old, and with radiators in good condition. If the home also has a more modern and eco-friendly air conditioning system than traditional radiators and boilers, the home certainly adds value.

Electrical system

First of all, the electrical system must be no more than 20 years old and must be compliant, meaning it must comply with the directives of Laws No. 46/90, No. 186/68, and Presidential Decree No. 447/91. Otherwise, the cost of repairing it and making it usable will be borne by the buyer. If the system is too old, it may have thin wires that are easily subject to short circuits and even explosions and fires. Finally, other factors that contribute to declaring an electrical system in good condition include the number and location of light points, i.e., electrical outlets and switches: the more, the better, provided the system is compliant.

Evaluating the added values ​​of a house

The presence of certain elements in a home, not strictly necessary but which add value and functionality to the home itself, obviously also increase its final cost. Elements of this type can be:

• high-quality finishes and materials , such as real wood flooring, wooden or high-performance window frames, armoured, reflective or double-glazed glass, etc.
• special air conditioning systems
• home automation systems
• quality sanitary facilities , with possible showers or hydromassage tubs and/or saunas
• furniture included (if of quality, it further increases the final value)
• semi-permanent verandas or gazebos in outdoor spaces
• swimming pools
• Security systems , from burglar-proof to video surveillance: grilles, armored doors, centralized cameras, burglar alarms, etc.

Evaluating a house: beware of mortgages and amnesties

It’s clear that if a house is encumbered by a mortgage or has previously undergone unlawful renovation work, requiring a mortgage amnesty, the value of the property drops dramatically, as the new owner will have to pay for it. If you’re buying a house, you need to make every effort to verify whether such conditions exist: usually, having a trusted notary for the preliminary deeds and purchase agreements ensures that everything is in order.

Conversely, if we are selling the house, it is a good idea to inform the future owner of any mortgages and amnesties, and to carry out these before the sale deed.

If we have to sell a house: how to increase its value

If we have to sell a house and want to make some last-minute improvements, obviously without spending excessively, we need to carry out some operations:

• have water leaks repaired from the upper apartments, in order to eliminate mold or similar stains and improve the general condition of the walls
• Fill all the holes in the walls , resulting from nails, screws, etc., with filler, sand them well and then repaint the walls, even if they seem to be in good condition.
• have any broken locks repaired
• clean , polish , and perfume every corner of the house with care, inside and out