Key factors that influence the selling price of your property

Almost all cities experience fluctuations in real estate prices over time.

These trends are influenced by factors such as supply and demand.

When the market sees rising prices, the advantage shifts to property owners. However, some cities may lose their attractiveness and popularity, leading to a decline in prices.

If your apartment or house is in an area where prices are trending downward, you’ll need to be resilient. In such cases, you may have no choice but to follow the market's direction, even if it’s not in your favor.

In short, you must adjust the selling price of your property according to the overall trend in your area. It is also crucial to be responsive and adapt your price quickly in order to sell your property faster.

You can stay informed about the latest real estate price trends in your market with our free house price tool:

The characteristics of a property are key factors that determine its selling price. Future buyers will take these into account before making a decision. Features like balconies, terraces, gardens, swimming pools, and parking spaces add value to your apartment or house compared to other properties on the market.

If your property includes one or more of these features, you may want to consider setting a higher selling price.

Having a terrace or garden is a significant asset, especially in an urban area. On the other hand, if your property lacks outdoor space, we advise against overpricing it.

The orientation of the property (North, South, East, West) is another important factor. The amount of sunlight varies depending on the orientation. For example, a property facing North receives less sunshine compared to one with an East/West orientation, which can also affect the sale price.

Before selling an older property, it is essential for the owner to conduct a home energy audit. If your apartment or house has a good energy rating, you can command a higher price. This is a key criterion closely scrutinized by buyers, and for good reason. Energy prices have soared in recent months, and prospective buyers are wary of investing in energy-inefficient properties that will cost them significantly more in electricity and gas.

As a real estate investor, it is also an ideal time to purchase properties that do not require major energy renovation work. The National Initiative to Advance Building Codes, effective in June 2022, adopts the latest building codes and standards for modern buildings. Owners and investors must act quickly to complete renovations to ensure their properties meet rental standards. Failure to do so could increase the final renovation bill, which can dampen investor interest in purchasing older properties.

The concept of green value is becoming increasingly important in real estate. An energy-efficient home can potentially be sold for a higher price than a less efficient one. However, this also depends on the local real estate market. In some areas, the green value may not significantly impact the sale price of a property.

The price of your property will also vary depending on whether it requires renovation work or has been refurbished before the sale. Properties needing renovation are often sold at a lower price because the cost of repairs falls on the future buyer. If the work required is minimal, such as a fresh coat of paint or small repairs, it’s better to complete these tasks before selling to make a good impression on potential buyers and increase your chances during showings. A property will show much better with a refresh, rather than if it requires major renovations.

For larger renovation projects (e.g., electrical upgrades, roof repairs, boiler replacement), most real estate experts recommend estimating the cost of the work beforehand. This allows you to inform potential buyers of the expenses they may face, fostering transparency, which is often appreciated.

If you’re selling to an investor, they will also value having an estimate of the renovation costs. By handling the renovation themselves, they can deduct the expenses from their rental income taxes, providing a clearer picture of the work involved.

Additionally, your property may receive a discount or a premium based on its flaws or features.

The location of your property greatly impacts its price. If it is in a highly sought-after neighborhood where supply is lower than demand, its price can increase rapidly. Conversely, if your property is in an unattractive area, you will likely need to lower the selling price to attract a buyer.

First, you should inquire about the current price per square meter in your neighborhood to get a general idea of your property’s selling price.

Additionally, even if your property is in a city with high demand, there can be significant price differences between neighborhoods. Factors such as the proximity to shops, schools, green spaces, and public transportation can influence the price. This underscores the importance of obtaining a local estimate of your property's price per m². To ensure your selling price is accurate, consider consulting with real estate experts who can evaluate your apartment or house and determine a price that reflects both the market conditions and the characteristics of your property.

The main factors affecting property prices have been discussed above, but it's important to also consider contextual and cyclical factors. Increases in house prices can be driven by lower interest rates, easier access to mortgages, rising incomes, and population growth. When housing supply doesn't respond quickly enough to this rising demand, property prices increase. Conversely, a decrease in demand or an increase in supply tends to push prices down. Therefore, real estate prices are significantly influenced by supply and demand dynamics. These price variations depend on both internal and external demand-side factors, affecting families or the real estate market as a whole.

Key points to remember about contextual and cyclical factors

• Population growth or decline affects housing demand.
• Higher wages increase the likelihood of people buying homes.
• A country's economic stability depends on both internal and external factors, which directly impact the real estate market.
• Changes in family structures (e.g., families with one or more children, stepfamilies) influence demand for specific types of housing (e.g., properties with two or more bedrooms).
• Demand is constantly evolving, reflecting the changing needs of the population. What is true now may shift over time.

To summarize, the factors that determine the price of a property are both internal and external to the state of the property. Everything related to the property itself—such as its general condition, painting, electrical installation, or boiler—is your responsibility, and you can improve these factors if you wish to sell at a higher price.

On the other hand, external factors like the evolution of the real estate market, the location of the property, and contextual and cyclical factors are beyond your control. These external factors play a significant role in determining the price of your apartment or home, and they should be considered when setting the sale price.

To ensure you price your property accurately, it is advisable to consult a real estate expert. They can provide a precise estimate, helping you sell faster and at the best price.