What to Know Before Getting Your Home Appraised

If you own a home, a valuation may be necessary. Valuations are usually conducted in connection with a sale. They allow you to offer the fairest possible selling price, based both on the unique characteristics of your property and on its relative value to other properties available on the market.

Valuations are not only conducted when selling a property, however. They may be necessary for other reasons as well. This could be the case in inheritance disputes, in the event of a separation of property after a divorce, or if the property is ordered to be sold at auction. In all of these cases, a detailed written valuation of the property’s market value is required by law.

If you want to know the value of your property, you must consult a professional. While some cantons offer online tools that allow you to roughly estimate the price of your home (website of the IAZI, Information and Training Center for Real Estate AG), they cannot provide a reliable and official valuation. Only a professional can determine the market value of your home based on its material value and the current real estate market situation in your region.

There are three main types of appraisers who can help you determine the value of your home. First, you can choose to hire an architect. This professional must be registered with the Swiss Technical Federation (STV) and the Swiss Society of Engineers and Architects (SIA) for their appraisal to be recognized. It is advisable to involve an architect when selling properties that require renovation, as these professionals specialize primarily in construction costs and can easily factor in the price of potential construction work. However, the costs for conducting an appraisal are high and can amount to up to CHF 3,000.

It is also possible to hire a professional real estate appraiser. They must hold a federal professional certificate to work under this title. They will conduct an appraisal by inspecting the property on site and taking into account all administrative, legal, and commercial factors. As with architects, the cost of an appraisal can be relatively high, averaging around CHF 2,000.

Finally, in the vast majority of cases, owners choose to engage a licensed real estate agent through a real estate agency. These professionals are able to fairly value the property based on market prices. They also have the advantage of usually offering the appraisal free of charge.

One of the most decisive criteria for the price of a home is its location. This includes both the location itself (canton, municipality) and the living environment. The value of an identical property can double depending on the location, as the supply and demand for land and houses can be more or less tight there. For example, the value of a property in the most expensive cantons such as Geneva, Zug, or Schwyz will be higher than that of a similar property in the more affordable cantons of Graubünden, Glarus, or Jura.

In addition, the living conditions and amenities near the property also have a significant impact on the price. If the apartment is located in a residential area, close to shops, schools, and various services, the value will increase. Proximity to public transportation also has a significant impact on the value of the property. Other criteria taken into account include noise pollution, sunlight, proximity to green spaces, and the view. The neighborhood also affects the price of the property, as a terraced house, for example, is cheaper than a detached property. Finally, the supply and demand for land and built-up houses in this geographical area are also taken into account to determine the value.

In addition to the location of the house, there are many other features that affect its value. First of all, the value depends on the property’s living space, the number of rooms, and the number of bathrooms. The quality of the building and the year of construction are also important for the valuation. The appraiser will consider many factors, such as the thickness of the masonry, the insulation of the roof and walls, the age of the electrical system, the type of heating system, etc.

Finally, the possibilities for expanding and extending the house will also be included in the price calculation. To this end, the person conducting the appraisal will consider the area of ​​the property and the legally possible use of the land (the buildable area of ​​the property).

It can sometimes be difficult to accurately assess the value of a property, which is why some owners choose to involve multiple appraisers. Determining the value of an old house is especially challenging because the property’s characteristics require a detailed assessment.

For example, the cost of draining a damp floor, the risk of rotting roof beams, and the risk of rusting balcony steel supports must be assessed. You should also estimate when the heating system will need to be replaced and at what cost. Finally, if the house has cracks, these should be inspected to estimate the cost of potential repairs.

Also, be careful not to overvalue your property. Some people are tempted to list their property at a price that exceeds its actual value, assuming the buyer will fall in love with it. However, keep in mind that credit institutions and banks in Switzerland often require a property appraisal in order to grant a loan or mortgage to the buyer, thus basing their valuation on the actual value of the house.