How much is my property worth?

The past decade with its expansive monetary policy and historically low mortgage interest rates has really fueled the desire for home ownership. The latest signals from the economy do not give much hope of a turnaround today either. Homeowners can look forward to low financing costs for a long time to come. The possible abolition of the imputed rental value could even exacerbate price pressure in high-demand markets. As good as it sounds, immigration, employment and purchasing power, along with low interest rates and political conditions, are the foundation for stable real estate prices. Some of these economic pillars are showing cyclical signs of ageing, not least at a time when the SNB’s monetary policy instruments have largely been exhausted. Regionally, the first changes are becoming apparent on the supply and demand side. It is becoming increasingly common to say “keep your eyes open when buying real estate” and “good things come to those who are committed for the long term”.

Hedonic valuation model

Digitization already hit the valuation system at the turn of the millennium and successfully supplemented it. Transaction and property data are recorded by banks according to uniform standards and enriched with municipal and geodata. Banks use this form of price plausibility check for around 80 percent of the transactions that take place today. Price band deviations of +/- 15 percent from the statistical value are generally accepted without further questions or inspections of the property. What is justifiable from a bank’s portfolio perspective means, in the worst case, the partial destruction of equity for the individual buyer. Correct, uniform and honest recording of the valuation object is therefore the basic rule for usable results.

Important: Hedonic valuation models are only suitable for marketable properties without specialties. Unconventional construction methods, building restrictions, expansion options or obligations arising from notes, reservations, easements, regulations or ancillary cost agreements are not taken into account when determining the value.

Professional expert opinions are essential

For most private households in Switzerland, owning their own home is the biggest investment in their lives. This makes it all the more important to provide the various stakeholders in this process (buyers, sellers, developers and financing institutions) with the best possible support and coordination. Buying a home is often an emotional act that touches all the human senses. Where conventional comparative value methods and hedonic models provide too little information, mediating experts are required. When valuing owner-occupied homes, a number of issues come into play that are not apparent at first glance, but can cause major differences between comparable properties. A professional real estate valuation is always based on the sum of these factors and takes into account the opportunities, risks, potential and the legal conditions of the land register and public building law. In addition to traditional asset valuations, which take into account the land, buildings, surroundings and ancillary building costs, the income capitalization method is also increasingly being used.

Valuations in the age of digitalization

Market data and municipal reports are now available at the touch of a button. Ginesta Immobilien therefore works with the latest valuation and market data tools in order to meet the increased requirements in the valuation process.

As an estate agent with a long-standing reputation, we also benefit from countless of our own transaction data, which we can incorporate into our valuation as comparable properties. Our valuation solutions enable efficient processes for complex real value, capitalized earnings value or discounted cash flow valuations.

Ginesta valuation desk services

– Valuation of single-family homes and condominiums
– Valuation of multi-family, residential and commercial properties
– Valuation of commercial and industrial properties
– Valuation of restaurant and hotel properties
– Valuation of land
– Project assessments from development to realization
– Valuation of building rights, residential rights or usufruct situations
– Portfolio valuations
– Market and location analyses

Costs and duration of a real estate valuation

If you would like to find out how much your property is worth, click here for a free online valuation.

Information on personal professional advice can be found here.

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