Property valuation is an essential process for every real estate transaction, mortgage loan, inheritance, or business operation. However, due to an inexperienced approach, many common mistakes are often made. In this article, we explain the 7 most frequent mistakes and how to avoid them.

Confusing market value with cadastral value

Sometimes people confuse the market value of real estate with its cadastral value. However, the cadastral value is used for state registration purposes, while the market value reflects the actual sale price. It is important to clearly distinguish between these two concepts.

Relying only on similar listings

Often, property owners determine the price of their home based on online listings. However, listing prices do not always reflect the real market. A professional appraiser also considers market analysis, comparable sales, and additional legal factors.

Ignoring additional value factors

For example, high-quality renovation, a spacious yard, proximity to infrastructure, or the availability of ownership documents (title deed) significantly affect the property’s value. Ignoring these factors can artificially reduce the property’s worth.

Setting a price without checking legal documents

Property valuation is not based solely on physical characteristics. Issues with documentation (lack of title deed, mortgage encumbrances, court disputes, etc.) directly affect the property’s value.

Using outdated market data

The real estate market is constantly changing. Valuation based on prices from several years ago is a serious mistake. Even within a short period, the market can experience significant increases or declines.

Not working with a professional appraiser

One of the most common mistakes is failing to consult a specialist. Non-professional valuation creates risks in both transactions and legal matters.

Ignoring legal advice

Property valuation is not only an economic issue but also a legal one. Failure to conduct legal due diligence related to inheritance, mortgages, court cases, or tax obligations can lead to major problems.

Conclusion

Mistakes made in property valuation can lead to serious financial losses and legal issues. For accurate valuation, it is essential to seek support from both a professional appraiser and a lawyer.

📌 If you need professional assistance with property valuation and legal matters, contact us. Our experts will support you in making the right decision.