Three approaches to property valuation that really work
“They say that in real estate you make a profit when you buy a property, not when you sell” declares Rami Wali, CEO of luxury realty company The Pearl Gates, at the start of this insightful video on approaches to Qatari property valuation. But Rami also appreciates that sellers want to achieve the best price for their property: so what’s the solution?
The sales team at The Pearl Gates believes that pinpoint-accurate pricing holds the key to buying and selling success. A house price valuation is about more than simply assessing the sale prices in a single residential street. That’s why, when valuing a property, the team takes into account everything from the average price of similar properties to the potential return on investment.
Here Rami describes the three different valuation methods used by The Pearl Gates:
The cost approach
The company uses this approach to assess the value of luxury villas – either of homes already built, or those available off-plan. Using the “cost” approach, they take into consideration the land value and construction costs then subtract the depreciation percentage. Rami says: “Based on that, we advise our clients whether to buy something new and build from scratch or buy something ready-made.”
The comparable sales approach
To come up with a value for a property about to be offered to the market, The Pearl Gates’ sales specialists compare listings of between five and seven recently sold properties, making sure they share similar features such as location, size and type of layout. Rami comments that he will even make sure all the listed properties share a similar view if an attractive view is a factor that could potentially affect the sale price. The final valuation is based on the median figure calculated from the selected listings.
The income approach
To find a property value linked to potential rental income, Rami’s team will once again take five to seven recently sold properties, observing both the sales price they have achieved and their potential to earn rental income. The final property valuation is based on the median figure calculated from the chosen listed properties, multiplied by the estimated rental income that the property could generate.
There may be easier ways to come up with a house price valuation, but Rami believes that a combination of thorough research, careful mathematical calculations and in-depth market experience can produce pinpoint-accurate results.
The Pearl Gates is a company with a strong reputation for honesty, knowledge and reliability matched with a passion for real estate. The agency – which specialises in properties located in The Pearl, West Bay, West Bay Lagoon and Lusail City – is led by two partners who are not only involved on a strategic basis but are also active in the day-to-day running of the business. Such close involvement means that the company is able to offer the exceptional, personalised service that sets them apart from the other players in the market.
If you’ve been wondering “how much is my home worth?”, the next step should be to contact a trusted realty company. At The Pearl Gates, our home valuations are calculated to reflect current market conditions and attract maximum interest from buyers.