Selection of comparable properties
Properties similar to the one being appraised are selected. These properties should have similar size, age, style, condition, and location.
Price adjustments
If comparable properties have specific differences (e.g., larger lot size, better amenities, or superior condition), their prices are adjusted to make them comparable to the subject property.
Estimate of market value
The market value of the subject property is estimated based on the adjusted prices of comparable properties, taking into account relevant factors. The current market condition—whether it favors buyers or sellers—is also considered.
Location
The value of a property depends heavily on its location—desirable areas or proximity to the city center increase value.
Condition of the property
New or renovated properties have higher value compared to older, worn-out buildings.
Property type
Commercial buildings, apartments, houses, and spaces—each type has a different value per sqm.
Amenities and facilities
Features like air conditioning, parking, elevators, balconies, and other amenities increase value.
Property size
Larger properties generally have a higher value (this may not apply when calculated per square meter).
Access to transportation and infrastructure
Proximity to public transportation and infrastructure boosts the value.
Market conditions
The state of the real estate market (high demand or supply) affects prices—higher demand leads to higher prices.