Is it possible to increase the price of an apartment in Tyumen if you are going to leave furniture and household appliances in it? Appraisers' response ABOUT OO "AGA T-Ets en" ka" - Yes and no. Read more in our analytical material.
Of course, every buyer is free to do as he wants, but market statistics tell us that increasing the price of an apartment if you are going to leave interior items in it is not always justified.
Let's start with what has already become market practice. Almost all apartments of the new stock will have built-in furniture and kitchen units when sold, sometimes with built-in appliances.
Price statistics show that this is no longer considered a reason to add extra tens of thousands to the price of an apartment. But built-in furniture will be an advantage when choosing (if it is in good condition, of course).
But how to assess the situation when the seller is going to leave in the apartment all the furniture, and even household appliances ? Alas, the times of total shortages have already passed, and used ones may only be of interest to those who are buying an apartment for rent. And there are few such buyers during the crisis.
To understand whether furniture affects, we analyzed the segment of secondary real estate in 1,2,3 Microdistricts in Tyumen, considering offers of comparable apartments with and without furniture.
The analysis made it possible to divide comparable groups into several segments. In the first there were apartments from the low price category (from 44.5 to 50 thousand rubles/sq.m), in the second - average prices for supply (50 -60.5 thousand rubles/sq.m), in the third – apartments with high prices (from 70.0 to 80.5 thousand rubles per sq.m.).
Let us recall that the average cost of supply in the area at the time of the study was 54,824 rubles/sq.m.
As the study showed, the adjustment for the availability of furniture in an apartment depends on the price segment in which the offer falls. The results are summarized in the table:
Thus, the following conclusions can be drawn:
- In the lower price segment, for most cases, the situation is valid when the seller does not increase the price of the apartment. Rather, the furniture remains as a “load”, and its condition is such that no one will pay extra for it.
- In the middle price segment, there are both situations in which they do not pay extra for furniture, and situations where the furniture is a reason for the seller to raise the price (and quite significantly). It all depends on the condition of the furniture and/or equipment. Modern models in good condition can raise the price by that same +15%, and old furniture and appliances will no longer become a factor in the increase.
- The high price segment shows small but stable adjustments for the availability of furniture and household appliances when selling an apartment. Of course, here it is a priori understood that the items are in good condition, these are imported and modern models.
ABOUT OO "AGA T-Ets en" KA" offers consulting services on calculating the possible cost of selling your property, taking into account all the factors determining the market price. Prices for consulting services are given in our
Head of the assessment department of Eurasia Service LLC,
full member of SRO ROO (registration No. 0003083)
When preparing apartment assessment reports, our company’s specialists use various methods and approaches. The use of comparative approach methods is not complete without the use of adjustments when determining the value of the valued object.
The application of adjustments (amendments) depends on many characteristics of the property being valued (date of sale, auction and terms of the future transaction, legal registration of ownership of the property and the presence or absence of restrictions on ownership, location and distance from public transport stops, floor, type of house, interior decoration premises, the ratio of the total area to the living area and to the kitchen area in the apartment, the presence of a separate or shared bathroom, the presence of balconies or loggias, the view from the apartment windows - to the outer part of the street or to the courtyard).
Of course, all adjustments require proper justification and explanation. Therefore, below we will try to bring together and justify the size of one or another adjustment (amendment) when conducting an assessment and determining the market value of an object.
1. Adjustment for bargaining
When studying the current situation on the market at present, as well as based on the experience of assessing many objects, the value of the adjustment for bargaining is 7%. In fairly rare cases, the transaction price and the offer price are the same. Please note that when making adjustments to the auction, the difference between the price of the transaction being concluded and the price of the existing offer is taken into account. How is this difference detected? During mutual negotiations on price, i.e. during the bidding process. The initial price in most cases is significantly higher than the actual cost of the property. This premium, according to our calculations, is the above 7%.
2. Adjustment to date of sale (offer)
In many cases, some time has passed from the date of sale of the property being assessed (for example, more than a month); accordingly, changes have occurred in the market that affected, first of all, the price level. The adjustment to the date of sale takes into account these changes, namely the time period that occurred before the publication of information about the sale price.
Making an adjustment to the date of sale means that changes in market price increases have been taken into account and taken into account. This point is very important to take into account when assessing and make adjustments.
3. Adjustment to the terms of the transaction
When assessing an object in relation to which the subjects intend to make a transaction, the conditions of the transaction itself are also taken into account. If the object of assessment is free from the rights of third parties (for example, no one is registered in the apartment), i.e. is free both legally and physically, then an adjustment to the terms of the transaction is applied - 10% more expensive. This is the average correction. In order to clarify, let us give an example - if you need to evaluate an apartment for sale with a simultaneous purchase (exchange), then the cost of the apartment will be less by the amount of the specified adjustment. The rationale for this is to waste time searching for an exchange option that would satisfy the wishes of the two parties to the transaction.
4. Adjustment to ownership
The value of an object is influenced by many factors. At the same time, it is necessary to take into account parameters that reduce its cost. The title adjustment refers to the difference between the price of an object in the presence of title, formalized in accordance with legal norms and requirements.
If state registration of ownership of the property has not been carried out, then the adjustment is 5-10% for a decrease in value. A similar amendment applies if there are various restrictions on the right of ownership or other encumbrances. In such cases, the value of the object decreases and, accordingly, the transaction price decreases.
5. Adjustment for location
This characteristic of the property being valued, such as location, is the most common, as well as one of the most significant in determining the value of an apartment in the conditions of existing market relations. The need to correct for location arises when the location of an object differs from similar objects. If the apartment is located far from a metro station or other public transport stop, then this directly affects its cost downward. Conversely, the proximity of the apartment to tram, trolleybus, bus and metro stops increases the price of the apartment.
The adjustment is up to 15% if the apartment (the object of assessment) is located far from a bus (trolleybus, tram) stop or, in order to get to the apartment from the metro station, you need to use ground transport, this reduces its price. Moreover, every 200 meters from the public transport station to the apartment, namely every two minutes that you need to walk to get to the house, also affects its price downward by 1% (for every 200 meters).
6. Adjustment to floor
When evaluating an apartment, the floor on which it is located is taken into account. The factor that affects the cost is which floor the apartment is located on - on the first floor, on the last floor or between them. If the floor is the first, then this entails humidity and low air temperature in the apartment, and also, as a rule, in apartments on the first floor there is not enough natural daylight due to trees or bushes planted around the house. As for the top floor, there is a high probability of roof leakage and strong heating of windows in the summer. A problem with water pressure due to the upper floor cannot be ruled out. Therefore, apartments on higher floors will cost more than apartments on lower floors
The adjustment per floor is 15% for the first floor and 10% for the last.
7. Adjustment for finishing quality class
Repairs and quality of finishing affect the cost of the apartment most directly. Impeccable and high-quality finishing increases the price by 10%.
The adjustment for the finishing quality class is calculated by analogy with a similar apartment.
There are four types of finishes:
- without finishing - there are no interior doorways, windows are installed, the walls, floor and ceiling have not been subjected to finishing work. This is a primary finish that requires repair work.
- simple finishing - the walls and ceilings of the apartment are whitewashed or covered with wallpaper, the floor is tiled, linoleum or parquet, the bathroom and kitchen are equipped with plumbing.
- improved finishing - the walls and ceiling are covered with acrylic paint or wallpaper, the floor is covered with tiles, linoleum or parquet, the bathroom and kitchen are equipped with high-quality sanitary ware.
- high-quality finishing - the apartment has undergone high-quality renovations, using modern construction technologies and high-quality materials. The existing surfaces are perfectly leveled, the apartment is equipped with the latest electrical wiring and plumbing. It is allowed to carry out redevelopment according to an individual project using structures of a complex composite configuration.
8. Adjustment for the type of house
When determining the market value of an apartment, the assessment process takes into account such characteristics of the property as the type of building in which the apartment is located. Based on general appraisal practice and our experience, in particular, an appraisal object located in a block or panel type house is 10-15% cheaper.
But such an amendment does not apply if the apartment is located in a brick or brick-monolithic building. At the same time, analogue apartments are compared, which in all other respects, except for the type of house, have similar characteristics. As can be seen from the essence of the applied adjustment, more modern and environmentally friendly materials increase the value of the property being assessed.
9. Adjustment for total area, living area and kitchen area.
When evaluating an apartment, the fact that a large area of the property reduces the cost per square meter is taken into account. And also the living area and kitchen area also plays an important role when applying the adjustment. Thus, apartments with a larger living area and kitchen area have a higher cost than their counterparts with a smaller living area and kitchen area.
When evaluating an apartment, the following adjustment is applied to the area - every 5 sq.m. reduce the cost of one square meter by 1%. When comparing with a similar apartment that differs only in area, appraisers apply this adjustment.
In addition, adjustments are often made depending on the area of the kitchen, because... its size affects the overall cost of the apartment on the housing market. The adjustment is applied at the rate of 0.5% per difference of 1 sq.m. kitchens.
10. Adjustment for the view from the windows
The view from the window in most cases greatly influences the cost of the apartment. This can be explained simply - when making a transaction and purchasing an apartment, the new owners receive not just a view from the window, but an environmental characteristic. Apartments that are located with windows facing the outer part of the street, roads or highways are significantly cheaper than those apartments whose windows overlook the courtyard. But the most expensive apartments will be those that have windows on both sides - both on the street and on the courtyard. In general, the adjustment for the view from the windows is 10-15% of the value of the property being appraised.
11. Adjustment for the presence of a balcony/loggia
An essential factor in determining the market value of an apartment is the presence of a balcony and (or) loggia. In addition, there may be several balconies (and/or loggias) and this increases the price of the property. If the apartment has a balcony (and/or) loggia, then this is taken as a positive characteristic and is considered an improvement. This parameter is taken into account when assessing almost any apartment. The amount of correction (correction) ranges from 0 to 5%. As you can see, the gap between the lower and upper threshold of the amendment is very significant, and is applied in each case individually, but in comparison with a similar apartment.
12. Adjustment for the bathroom
When assessing and determining the market value of an apartment, special attention is paid to the layout of the sanitary facilities in the apartment. In addition to the above, in some cases the number of bathrooms is also taken into account (there is not always only one bathroom in an apartment). An apartment in which the toilet is separate from the bathroom will command a higher price than a similar apartment with similar descriptive characteristics, but with a shared bathroom. In this case, the adjustment averages 5% of the value of the property being assessed.
13. Adjustment for liquidity of the share in the apartment
There are often cases when an assessment is required in relation not to an apartment, but to part of it, i.e. shares. At the same time, making adjustments is inevitable, because The market value of a share in an apartment is influenced by many factors.
At the same time, all those parameters are taken into account that would be taken into account when assessing the apartment as a whole, and not just its share. And also, you need to take into account the fact that a share in an apartment is much more difficult to sell or buy than an apartment as an independent integral object. This point also affects the determination of the value of the share.
When applying the liquidity adjustment for the share in the apartment, it ranges from 10 to 40%. This is a fairly large gap between the lower and upper threshold, so you need to take into account the characteristics of the allocated share, as well as the characteristics of the entire apartment.
When assessing an object in relation to which the subjects intend to make a transaction, the conditions of the transaction itself are also taken into account. If the object of assessment is free from the rights of third parties (for example, no one is registered in the apartment), i.e. is free both legally and physically, then an adjustment to the terms of the transaction is applied - 10% more expensive. This is the average correction. In order to clarify, let us give an example - if you need to evaluate an apartment for sale with a simultaneous purchase (exchange), then the cost of the apartment will be less by the amount of the specified adjustment. The rationale for this is to waste time searching for an exchange option that would satisfy the wishes of the two parties to the transaction.
- without finishing - there are no interior doorways, windows are installed, the walls, floor and ceiling have not been subjected to finishing work. This is a primary finish that requires repair work.
- simple finishing - the walls and ceilings of the apartment are whitewashed or covered with wallpaper, the floor is tiled, linoleum or parquet, the bathroom and kitchen are equipped with plumbing.
- improved finishing - the walls and ceiling are covered with acrylic paint or wallpaper, the floor is covered with tiles, linoleum or parquet, the bathroom and kitchen are equipped with high-quality sanitary ware.
- high-quality finishing - the apartment has undergone high-quality renovations, using modern construction technologies and high-quality materials. The existing surfaces are perfectly leveled, the apartment is equipped with the latest electrical wiring and plumbing. It is allowed to carry out redevelopment according to an individual project using structures of a complex composite configuration.
An appraisal report is a written document that meets all the requirements of professional ethics, clearly and accessiblely reflects the progress of the appraisal process and contains the initial data used by the appraiser, their analysis, conclusions and the final value. The appendix to the assessment report contains all photographs, sketches and maps not included in the main sections of the report. Sometimes a glossary of terms is included in the appendix.
The most important factors in determining the price are the prices of apartments in your building with the same number of rooms, then all other apartments in it, then apartments in similar buildings in your area. To select “similar” houses, we carried out a study on the typology of the housing stock of Moscow and Moscow Region.
APARTMENT ASSESSMENT USING A COMPARATIVE APPROACH
Analogs must be as similar as possible to the Property being assessed, primarily in terms of the first five elements of comparison, and for residential real estate (apartments) also in terms of physical characteristics (number of rooms, total area, type of building, etc.). All selected analogues are summarized in Table 8, which includes primary data obtained from open sources and additional data obtained directly from the seller of analogues.
Valuation of an apartment using a comparative approach
The following provides the rationale and calculation of the amount of adjustments for elements of comparison, which are different for analogues and the Valuation Object. A technique is used to bring each comparison object closer to the Object of Evaluation. Adjustments (amendments) can be cost or percentage. For quantitative characteristics, differences are usually introduced in value terms, and for qualitative ones - in percentage terms. Percentage adjustments are applied to both the cost of the comparison object and the comparison unit, and cost adjustments are applied to the cost of the comparison object. Adjustments for market conditions, location and wear and tear are percentages.
When applying the comparative approach, the value of the Valuation Property is determined in comparison with the sales price of similar objects. The basis for the application of this approach is the fact that the value of the Valuation Property is directly related to the sale price of similar objects. Each comparable sale (object of comparison, analogue) is compared with the property being valued. The accuracy of calculating the value of the Valuation Object using a comparative approach depends on the volume (completeness) and quality (reliability) of information on purchase and sale transactions (or offers for sale).
Adjustment for the Availability of Furniture When Valuing an Apartment
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In order to clarify, let us give an example - if you need to evaluate an apartment for sale with a simultaneous purchase (exchange), then the cost of the apartment will be less by the amount of the specified adjustment. The rationale for this is to waste time searching for an exchange option that would satisfy the wishes of the two parties to the transaction.
Adjustment for furniture when appraising an apartment
This is common practice. Let's not leave her side. Please note that sometimes there are discrepancies in documents. In any case, the evidence is paramount. You just need to remember that in this calculation you need to use the size of the apartment’s area without taking into account cold rooms (loggias, balconies).
In accordance with the law, the appraiser is required to use all three approaches to the valuation or justify the impossibility of using one or another approach, so it is incorrect to say that one report is better than another due to the fact that it uses two approaches instead of one.
Adjustment for the Availability of Furniture When Valuing an Apartment
Using the paired sales method involves comparing two properties offered for sale that are an exact copy of each other, with the exception of one parameter (for example, floor), which explains the difference in the price of these properties. It is important that the remaining parameters of the object of evaluation and the analogue must be the same.
After selecting analogues for calculating the cost of an apartment using a comparative approach, adjustments are made to the prices of analogues that take into account the differences between analogues and the object of evaluation. Adjustments can be either upward or downward. They can be percentage or absolute (based on 1 sq.m. of apartment area).
Apartment valuation
An important adjustment is the bid adjustment, which takes into account that the transaction price is usually lower than the price at which the property is listed on the open market. For apartments, the bargaining discount usually varies from 2.5% to 5%. Accordingly, for an apartment worth about two million, the discount on the auction will be 50 - 100 thousand rubles. Very often, the appraisal customer does not take this discount into account or considers its size controversial, however, taking into account the bargaining discount is a mandatory requirement when assessing an apartment for obtaining a mortgage.
Almost everyone has to deal with the services of appraisers sooner or later. The vast majority of customers for this type of work are people who want to get a mortgage; Assessment is also a necessary procedure when registering an inheritance, refinancing, dividing property in court and in some other cases. This article describes the nuances of appraising an apartment, which often cause confusion on the part of customers.
Adjustment for number of storeys when evaluating apartments
The comparative approach to valuation is a set of methods for assessing value based on comparison of the object being valued with its analogues, for which information is available on the prices of transactions with them. Conditions for applying the comparative approach: 1. The object must not be unique. 2. Information must be comprehensive, including the terms of transactions.
The promotion runs until the end of this month. Contact the manager for details. To find out how much it costs to appraise your apartment, call: We offer you the service of appraising an apartment on-line. It should be remembered that this estimate is approximate and has no legal force.
Adjustment for floor when valuing apartments
4.2.4. Need for renovation (finishing and equipment). The need for repairs leads to a reduction in the cost of the apartment, taking into account the upcoming costs of repair work. Adjustment v The adjustment is introduced to take into account the increase in the attractiveness of the analogue. The need for repairs leads to a decrease in the cost of the apartment, taking into account the upcoming costs of repair work.
Calculation of average sales and rental prices for retail premises located on the first floors of residential and administrative buildings and for those located in the basement and basement of buildings, depending on the price zone* of Ekterinburg. In this case, the prices of offers are used, and not the actual prices of transactions with real estate objects; the sale and rental prices of objects are displayed in the format of cost per 1 sq.m.
Apartment cost estimate
The main argument for refusing to use the income approach is that when analyzing offers on the rental housing market in Perm, variable factors were identified, such as: availability of furniture, household appliances, telephone, quality of repairs, “cleanliness” of premises and others that are difficult to identify stage of information collection. These factors are usually identified only during a direct inspection of the residential premises and can significantly affect the cost of monthly rent; the difference can reach approximately 1.5 times. The presence of such factors complicates the calculation of the income that an object can generate. Also, these factors affect the calculation of the capitalization rate within the framework of the income approach, which also complicates further calculations and determination of the value of the object.
2. To determine the cost of replacing part of the premises, you must first calculate the cost of replacing the entire building. To do this, it is necessary to have design and estimate documentation or a space-planning solution and a technical description of the structural elements of the building in which the object being assessed is located.
How to independently evaluate an apartment in the capital
“The larger the area of the apartment, the less its liquidity,” explains Arslan Ainakulov. “It’s much harder to sell.” Accordingly, the price per square meter for a large apartment will be less. Let's say we have a residential complex "Sunny City". There are apartments there, both 25 square meters and 30 square meters. That is, you walk in and there’s just a room there and nothing else. There, a square meter reaches $3,000. If we look at an apartment on the left bank with an area of 70 square meters, the cost per square meter will be the same - 2500-3000 dollars.
The analogue object must be located as close as possible to the object of evaluation. Ideal if in the same house or residential complex. In Astana, in principle, there are no problems with choosing options. Therefore, finding an apartment similar to yours in the same housing complex is usually not a problem. By priority, the criteria are distributed in the following sequence: residential building, street, city district.