Property Evaluation & Property Market Value in Cyprus
As in many countries, the property market in Cyprus is consistently fluctuating. Over the past few years, due to both economic growth and a higher demand for homes on the island, prices have seen an increase according to statistics.
Property market value definition
The Cyprus property market is generally affected by a range factors that will work to define the overall asking price for a range of properties when considered as assets. The market value is typically understood to be the price at which a property would comfortably fetch in a competitive setting, with two or more interested parties (or bidders) involved.
How is this calculated and how does it work for both the buyer and the seller?
As it stands, the market value of immovable properties in Cyprus is defined by the Director of Lands and Surveys, but assessments can be carried out and put forward by a licensed estate agent; with the condition of the property (both internal and external), its age, quality of fixtures and fittings, proximity to amenities and more being considered.
In cases where a value has been clearly defined by an authority, both sellers and buyers will be in a better position to understand the monetary worth of the asset in question – and this could prevent fraudulent, dishonest, or even invalid sales from occurring.
What about rental properties?
As frequently as market values for home purchases fluctuate; so too do they undergo shifts when it comes to renting. What a landlord may have asked for in 2015 may differ entirely when compared to 2020 and then there’s the fact that long term tenants may not fully understand the shift in rental values which can lead to further complications. There are so many things to consider when evaluating the cost of rent, from location to the time of year – and this is why it can be of benefit to understand how the market functions in Cyprus.
What are the benefits of being aware of the actual market value of a property?
One of the things that can be of benefit for sellers when the market value is clearly defined is that they are likely to get the money that they deserve from their property.
This can be important when considering older homes in states of disrepair and those that have been properly maintained and updated to suit the needs of modern homeowners. It can even prompt sellers to consider the condition of their property before putting it on the market (as they will want to maximize their chances of getting the best possible price).
For buyers, there can be a degree of safety in knowing the defined value, as it can act to reassure buyers that they are getting a fair deal for their investment.
How this supports the property marketability
Once a property has been given a proper valuation by an expert, its marketability becomes much easier for the seller, as well as those tasked with advertising and carrying out the transaction of the sale on their behalf, mostly because a target market can be better defined and catered to.
How the property exposure performs better
Having the right exposure means that a sale is more likely to be made in a desirable amount of time and for the right price for everyone involved.
How a property valuer and a property seller can become a team for better results
A property valuation that has been compiled without any input from the homeowner will address the basics of the property and its surroundings as seen by the agent in question. This could mean that the property could be listed at less, as a seller can add additional insight that a professional may overlook.
This can be especially prevalent when an agent isn’t familiar with the location of the property and information regarding local amenities could have an impact.
By the same token, a seller can work alongside with a valuator to determine how to increase the properties’ value. Sometimes simple fixes like clearing garden waste could improve the set value of a home, as can more substantial fixes like updating kitchens and bathrooms.
How a property buyer will use the property evaluation for his money protection
The evaluation itself can serve as a safeguard for the sellers’ asset, protecting the money that they may be able to obtain from the sale.
Asking Price Vs Market Value
The asking price for a property can vary wildly between what an expert defines and what the seller expects – and the market value doesn’t have to be strictly adhered to. It is advised for the seller to set their asking price near that of the market value however, to ensure a fair sale for all.
Professional Property Evaluation and Market Value Property
As market values can be assessed and defined by licensed estate agents, it shouldn’t be too hard to find a professional evaluation for properties all across the island.
Property Market Value and Land Registry Evaluation
The value defined by a professional agent will then be confirmed by the Land Registry (for the region in question). The initial valuation isn’t usually opposed or altered.