How much is my Sotogrande property worth? The secrets of property valuations in Costa del Sol
At the end of the day, a Sotogrande home is only worth what someone is willing to pay for it. Demand drives value. Getting it wrong leads to staleness and achieving less. Realistic values that are sensible lead to sales. A price that can be explained to a perspective buyer will yield a sale. By Charles Gubbins.
Be prepared to answer the question: ‘How have you arrived at that figure?’
So how can this be best done.
Firstly, I will always look at the comparisons available. I look at similar properties in Sotogrande that have sold recently and decide if the owner’s property is worth more or less.
Secondly, I will study what has actually sold in the vicinity of the property, and what is on the market for sale and at what price per meter square. I will always have an estimation before I visit the property in Sotogrande, Costa de Sol.
Thirdly, apart from the obvious factors of style, size, location, gradient, garden size and orientation, I also consider the following:
- Nearby schools
- Commuting potential
- What amenities are close by
- How motivated the seller maybe?
Fourthly, I would calculate replacement value. What would it cost to rebuild the same property on a similar plot in a close neighboring location? These are pure numbers and does not take into consideration supply or demand in the vicinity. Obviously understanding construction costs in Sotogrande is required.
Fifthly, I would establish price increase or decreases over the years, and particularly since the vendor bought the property. I would then test this against reality. So, if the seller paid half a million euros 10 years ago and prices have increased by 50%, the evidence would suggest a current market value in the region of euros 0,75 million. Is this realistic and is there evidence in recent comparable sales.
Sixth, if I can I like to provide a range of values from what can be (almost!) guaranteed to what might be achieved.
Other major issues to consider are local and global economics. A recession? Brexit? exchange rates? equity markets? All play a role in analysing Sotogrande’s property values in terms of growth and market activity.
If you would like to know more information about the properties available in Sotogrande, Spain, or how much your property is worth, do not hesitate to contact us.
Charles Gubbins
WhatsApp / Mobile: +34 607 911 661
Email: info@noll-sotogrande.com
