Property Valuation

1 – Definition of SCINjeko Property Valuation

Property valuation (or appraisal) is the central and foundational process by which a real estate advisor determines, in a reasoned and professional way, the most accurate selling or rental price range for a property (apartment, house, land, etc.).

Unlike a simple opinion or an automatic online calculation, it is an expert analysis that combines objective market data, specific property characteristics, and strategic advice.

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2 – The Main Goal: A Successful Sale

The ultimate goal is not just to provide a price but to set the price that will allow the property to sell under the best conditions:

• Speed: Avoid stagnation on the market.
• Profitability: Obtain the best possible price without undervaluing the property.
• Peace of Mind: Build trust with the seller/property owner.

An overvalued property scares buyers; an undervalued property harms the seller. Accurate valuation is the key.

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3 – The Three Main Valuation Methods

Our experts use multiple methods together to refine their analysis.

Method 1 – Comparative Market Analysis (CMA)

Description: The most commonly used method. It compares the property for sale with similar properties recently sold (not just listed) in the same area.

Advantages: Highly reliable because it is based on real transactions. Easily understood and accepted by all parties (sellers, buyers, banks).

Disadvantages: Requires access to reliable data on actual sale prices (agency networks, notary records).

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Method 2 – Replacement Cost Method / Patrimonial Balance Method

Description: Estimates the property’s value by calculating the cost to rebuild it identically (land value + construction cost – depreciation).

Advantages: Useful for unique properties or those without market equivalents.

Disadvantages: May not reflect the “market value” (what a buyer is willing to pay).

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Method 3 – Rental Yield Method

Description: Mainly used for rental investment. The value is derived from the potential rental income (annual gross rent × a multiplier, the “price/rent ratio”).

Advantages: Essential for advising investors.

Disadvantages: Ignores sentimental or personal use value for an owner-occupant.

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4 – Key Factors Considered

During the property visit, the SCINjeko real estate agent analyzes multiple criteria:

Market Context: Supply and demand in the area, interest rates, local economic dynamics.

Location: Municipality, neighborhood, proximity to amenities (transport, schools, shops), environment (quiet, view, exposure to nuisances).

Property Features: Living area (Carrez Law), number of rooms, general condition (to renovate, renovated), exposure, floor, presence of elevator, balcony/terrace/garden, parking/storage.

Construction Quality & Equipment: Year of construction, quality of materials, insulation (Energy Performance Diagnosis, DPE), high-end equipment (kitchen, bathroom).