What are the different property values?

Valeurs immobilières

Estimating the value of a property is a key step when it comes to selling or buying a house or a piece of land. The procedure is obviously the same in the case of inheritance: the heirs must know the value of the property in order to distribute it in fair shares. To estimate this value, many elements must be taken into account, such as the context and market prices. Cardis Sotheby's International Realty is your preferred partner for the valuation of your property. There are several types of real estate values for a property and knowing them is fundamental, whether you wish to buy or sell.

The market value

It is the price at which a property should be sold or bought. However, it is not calculated mathematically. It is therefore an estimate most often made by an expert agent who combines other values of the property with external elements. The market value is therefore assimilated to the market price. However, the price is the amount stipulated at the conclusion of the deed of sale between the seller and the buyer, whereas the value precedes the deed.

The real value (also called intrinsic value)

The real value, also known as intrinsic value, corresponds to the price to reproduce identically the same property from which a certain percentage of depreciation due to time and its obsolescence is deducted. We thus obtain the replacement value of the property. To this must be added the value of the land to obtain the real value. Beware, this value does not take into account the rule of supply and demand.

Collateral value

The collateral value is the evaluation of the value of the property by a mortgage creditor (a bank for example). In other words, it is the value that the creditor agrees to finance in the form of a mortgage. This value will often be lower than other values because the valuation is done in a conservative manner. This estimate takes into account the duration over time of the price of the property and not cyclical fluctuations, to give a constant value.

Insurance value

The insurance value is equivalent to the sum insured generally by the cantonal insurance institutions (ECA) or real estate insurance companies for what is not covered by the canton. Therefore, it may vary from canton to canton. This estimate is calculated by the replacement value of the property (without the land) that would have to be paid in the event of a total or partial loss. The insurance value is sometimes assimilated to the replacement value.

Tax value

The tax value is calculated by the tax authority. It represents the value for taxation of the property at the place of taxation. It is a reference value for certain tax assessments. It often corresponds to between 70% and 90% of the market value.

Yield value

The yield value corresponds to the annual rent, capitalized at a yield, accepted today by the financing institutes of 4% to 5%, depending on the location and quality of the object. This depends on the location and quality of the property. If an apartment or house is rented with a current open-ended lease, the value to be taken into account is not the market value, but the yield value. Our Cardis Sotheby's International Realty agents are here to help you evaluate the direct impact of this value on the selling price of your object.

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Financing