You are thinking about selling your property, but fear that it has lost value. What are the elements that risk losing the value of your property? How to react ? We take stock for you.
What causes real estate to lose value?
The loss in value of a property corresponds to a decrease in value compared to the price at which you bought the property. If you sold the property tomorrow, its sale price would be lower than its initial purchase price.
There are several reasons that can cause a property to lose value:
The first reason is intrinsic to the property: a house or an apartment is likely to depreciate over time, simply because its equipment and installations age, no longer meet the latest standards, etc.
The second has to do with the real estate market: if there are a lot of homes for sale for few buyers, your property will be in competition with others and you may have to make a concession on its price in order to be able to sell it.
The conditions for granting mortgages can also have an impact on the price of your home. Indeed, if interest rates are high, for example, people with access to mortgages, and therefore buyers, will potentially be fewer. If it becomes difficult to find a buyer for your property, you may be forced to reduce its selling price.
Finally, the environment close to your property can also reduce the price of your house or apartment. The causes can be multiple: significant noise pollution, crime in the neighborhood, seizures and auctions in the neighborhood, neglected maintenance of nearby public spaces, gradual closure of small businesses around the property, proximity to a railway line, etc.
How to calculate the depreciation of a property?
As you will have understood, to know exactly how much your property has depreciated (if it has depreciated), you need to know the current value of your property or your apartment.
You have the option of estimating your property yourself , or at least getting a first idea, thanks to the following tools: in addition to the sites specializing in property valuation which are easily found in a few clicks on the search engines, you can go to:
The Land Value Requests (DVF) database : on this site, launched by the General Directorate of Public Finances (DGFiP), you will have access to all the real estate sales of the last 5 years.
Patrim : this is a tool available from your private space on the tax website. You will then have access to precise data on more than 20 million real estate transactions. Very useful for getting an idea of the prices at which goods with services similar to yours were sold.
The Notaries of France website : it offers a tool to find out the price estimates per m² in a specific geographical area, depending on the characteristics of the property (surface area, number of rooms, etc.).
The other option is to call on a professional : the service will most often be chargeable, but the estimate from a notary or a real estate appraisal firm will be more precise.
To deepen the subject, go to our article
Have you noticed that your property has lost value? Do not panic, some good practices can help you fight against its depreciation. Renovation of strategic rooms
Rooms such as bathrooms and the kitchen, whose renovation may seem complex to future buyers, should be your priority. The other rooms can be satisfied with a little home staging to highlight their qualities and their potential. Home staging consists of enhancing your interior at a lower cost to optimize the success of its sale or rental: the concept is therefore to favor small renovations (painting, replacement of cupboard doors, new seals, etc.). The majority of buyers will be reassured by a property in which they only have to put their suitcases. Highland Properties one of the Best Realtor in Castle Rock assures you that you get a fair value of the property.
Energy renovation
A property that offers excellent energy performance is an undeniable plus for the sale. In addition, energy renovation work entitles you to aid, in particular MaPrimeRénov’ , accessible to all owners, regardless of their level of resources.
Investment in a “favorite” installation or equipment
The purchase decision is sometimes based on a little something extra, which will tip the balance towards one good rather than another. Depending on your budget and the real estate market in which your property is located, there is no shortage of options: a wooden terrace, a glass roof between the kitchen and the living room, cupboards in the bedrooms, etc. Please note: the cost of the work must remain lower than the theoretical capital gain on the sale price of the property.