How Do Real Estate Agents Do Property Appraisals?

Estate agents, also known as real estate agents or property agents, are professionals who specialise in buying, selling and / or renting properties. One of their key responsibilities is determining the value of a property. Property valuation, also known as property appraisal, is a complex process that involves various factors, such as the location, size, age, special features and condition of the property, as well as market demand, comparable sales in the area and current trends in the market.

Here we'll explore how our real estate agents at Jossour generally do property appraisals & what factors they particularly focus on when valuing a property...

Market Analysis

The initial step in determining the value of a property is for your agent to thoroughly analyse the current market. This involves actively researching the local property market to understand the demand and supply dynamics, current trends and the prices of comparable properties in the area, quite often referencing recent property sales in the specific neighbourhood.

Our real estate agents will use a variety of tools and sources to gather this information, including property portals, industry reports and their own extensive experience and knowledge of the local markets. As our real estate agents are highly focussed on El Gouna, Somabay, Makadi Heights and Almaza Bay, they have extensive expertise with providing appraisals in these particular areas.

Comparable Sales

As your real estate agent at Jossour has a good understanding of the local market already (in the areas mentioned above), they'll immediately look at comparable sales of similar properties to begin to determine the value of a property. Comparable sales, also known as comps, are properties that are generally similar to the property being valued in terms of location, size, age and condition. Then, they'll look at the sale price of these properties and make adjustments based on the differences between them and the property being valued. For example, if the comparable property has an extra bedroom or a larger garden, or some other special feature(s), your real estate agent will adjust the sale price to reflect this difference.

Physical Inspection

Next, they'll carry out a physical inspection of the property in person to assess its condition, size and features so they can accurately determine these specifics. This will involve measuring the rooms, checking the plumbing, electrical and air conditioning systems, and inspecting the roof, windows, doors and anything else that requires their attention, such as any improvements or renovations that have been made to the property, so they can take these into account as well. For example, a new kitchen or bathroom could increase the value of the property, whilst a dated decor could decrease its value.

Location

Not surprisingly, the location of a property is one of the most important factors in determining its value, therefore your real estate agent will consider a range of location-specific factors, such as its neighbourhood, the town itself, its proximity to schools, shops, transport links and of course other amenities, including any upcoming developments or regeneration projects in the area. All of these factors will influence the value of the property.

Market Demand

Market demand is another remarkably important factor in determining the value of a property. Your real estate agent will consider the level of demand for similar properties in the area and whether there's a shortage or surplus of properties on the market, particularly in the neighbourhood in question.

If there's high demand and a shortage of properties, this can push up the price of the property to some reasonable degree. Conversely, if there's low demand and a surplus of properties, this tends to result in a lower valuation.

Current Trends

Your agent will also consider current trends in the property market when valuing a property. For example, if there's a trend towards larger gardens, open-plan living spaces or unusually large swimming pools, this may increase the value of a property that has these features. Similarly, if a trend in Egypt appears towards sustainable or eco-friendly homes, this may increase the value of a property that has energy-efficient features, such as solar panels or insulation.

Our Closing Thoughts

Determining the value of a property is a complex process that involves a range of factors, including market analysis, comparable sales, physical inspection, location, market demand and current trends, which is why your real estate agent will use a combination of these factors and more, to arrive at a fair and accurate valuation of a property at a particular point in time in your local housing market.

If you're looking to buy or sell a property in our focus areas, it's incredibly important to work with an experienced and knowledgeable real estate agent, ideally at Jossour if you'd like the best service possible, who can help you navigate the complex property market and ensure that you get the best possible price, whether you're buying or selling your property.