Setting a price on your own villa or apartment is a very emotional thing
In this article I will give you some objective ways to give you an indication of your property value.
For the region Alfaz del pi, La Nuca and Altea. You will also understand that this method is a general valuation, without taking into account a number of extras such as sea view, 100% privacy etc ...
Valuation for a second-hand villa.
Through the order of architects, I can easily request the average sales price of the last villa sales this year. This average price is the selling price where villas of + 500K and sales below 100K are retained.
For my region I will come to the following prizes (July 2018)
ALFAZ DEL PI 1.767€/m2
LA NUCIA 1.552€/m2
If the price in your head deviates a lot from this objective valuation, it is good to ask yourself ... why? Keep in mind that these m2 prices are average prices. There probably are also villas sold in Alfaz for 2.000€/m2 with new bathrooms, new kitchen, sea view and 100% privacy. Also included in this average price range are villas from 1960 - 1970 maybe for 1,300 €/m2. This is due to the need to renew everything. The old aluminium windows with single glazing, no heating or air conditioning, orange flower motifs in the bathroom and kitchen and a pool in old-fashioned white square bathroom stones of 10x10 ... .etc. Conclusion: Demolition.
A well-priced second-hand villa has double glazing, central heating everywhere, air conditioning in the bedrooms, a modern swimming pool with mosaic, a garage, a modern kitchen, 3 bedrooms and 2 bathrooms and preferably 180m2 in size on a plot of roughly 1000m2.
A second way of calculating an indicative sales price is to ask the question ¨ For how much could I rent this villa to tenants? Know that there is a relationship between the rental price and the purchase price. This ratio is 5%
Example: If I purchase something of € 300,000 as investment, I want at least 5% gross return ( Rent)
300,000 € x 5% = 15,000 €: 12 months = 1250 € rent per month. Is this a realistic rent I could ask for this villa?
So if we apply both calculations to a second-hand villa of 180m2, we find the following results
ALFAZ DEL PI 1767€/m2 x 180m2 = 318.000€ rent = 1325€/month
LA NUCIA 1552€/m2 x 180m2 = 279.360€ rent= 1164€/month
ALTEA 2146€/m2 x 180m2 = 386.280€ rent= 1609€/month
Valuation for a second-hand apartment
For an investment in a second-hand apartment, my 5% rule actually applies even more for apartments than for villas. This is because apartments are bought much more as investment property to generate ROI with rents
With the same method we will now do the valuation for an apartment of 90m2
ALFAZ DEL PI 1926€/m2 x 90m2 = 173.340€ rent = 720€/month
LA NUCIA 1553€/m2 x 90m2 = 139.770€ rent= 580€/month
ALTEA /ALBIR 2286€/m2 x 90m2 = 205.740€ rent= 850€/month
As a seller, one can ask the question, why would someone buy my apartment, if the (rent) yields only reaches a 3%? Do you know what the rents are in your neighbourhood? If the seller wants € 200,000 in La Nucia, but the average house rental price is only 500 € in the neighbourhood, then the gross ROI gives a 3% return!? From this 3% ROI you still need to pay the community fee and property tax!
Or the rent is to low, or the sales price is to high! You can choose...
Conclusion: Average values are what the name says. If your asking price is higher than this average price in Altea, Alfaz del pi or La Nucia, wonder why? It could maybe have a good reason. Is your estimate based on emotion or is it based on facts! If you want to sell a house, and you want an honest market price, let yourself be advised by people with experience.
Copyright : Walter Matthyssen