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Property valuation: how to properly define property prices

Property for sale

Estate agents define accurate property prices in two steps using CASAFARI. First, they compare a property against up to 30 similar listings using over 30 filters in CASAFARI’s Property Valuation tool. Second, they analyse local supply, demand and average time on the market to justify the asking price and prevent financial losses caused by mispricing.

How to get a property valuation online in 2 simple steps

Property prices are affected by several distinct factors:

  • Location;
  • Number of rooms and total square metres;
  • State of conservation;
  • Whether it is furnished;
  • Current market demand;
  • How competitor properties are positioned on the market.

Taking all of these variables into account can be a time-consuming task when searching manually.

Creating an online property valuation takes only a few minutes when using property valuation software to evaluate these factors automatically.

How do you use a property valuation tool to find comparable properties?

Starting your analysis of the property market to define a pricing strategy requires the right market analysis tool.

To find accurate values efficiently, property professionals rely on real estate software to generate property valuations online. The software evaluates available market stock to establish direct comparisons between a portfolio property and competing listings.

CASAFARI’s Property Valuation allows you to find comparable properties by defining a location and specific characteristics, offering over 30 filters to select matching listings.

After identifying comparables, the tool provides asking-price benchmarks: a selling price, a fair market price and an out of market price. This allows you to set an effective asking-price strategy without underpricing or overpricing the property.

How does CASAFARI ensure a true representation of the property market?

To ensure comparables reflect market reality, CASAFARI aggregates property market listings across multiple sources, providing a complete 360-degree view of active market supply.

The Property Valuation report can include up to 30 competitor properties to define the pricing strategy, ensuring asking prices are not based on insufficient data.

You retain full control over which properties are included in the comparison, selecting only the listings that match your criteria.

Understanding broader market trends is essential when evaluating how properties compete for buyer interest:

  • Have similar properties been increasing or decreasing in value?
  • Is local demand strong relative to active stock?
  • What is the average time properties spend on the market before being sold?

Real estate analytics directly inform property valuations. When local supply is scarce or property values are steadily rising, a higher asking price is justified. Conversely, if demand falls or average time on the market is long and the client requires a swift transaction, adjusting the asking price downwards is advisable.

Running a property market analysis reveals the trends affecting specific asset classes and locations.

For a deeper property market analysis that supports your pricing strategy, count on CASAFARI Area Insights. The tool provides stock availability, asking prices per area, distribution across asset classes, and key market trends (see all property market trends that can be understood with our real estate software).

With these tools, real estate professionals can deliver data-backed property valuations to clients, clearly justifying the recommended asking price.

Photo by Patrick Perkins on Unsplash

Frequently asked questions

What factors affect a property valuation?

Key factors affecting a property valuation include location, total square metres, state of conservation, and whether the property is furnished. Market dynamics such as current buyer demand and the positioning of competing properties also play a critical role. Evaluating all these variables ensures an accurate valuation and effective pricing strategy.

What happens when a property is mispriced?

Mispricing a property invariably leads to financial losses for the seller. Underpricing results in earning less than the true market value of the asset. Overpricing causes the property to sit on the market for months, increasing carrying and maintenance costs while deterring potential buyers.

How does CASAFARI calculate a property valuation?

CASAFARI’s Property Valuation tool evaluates market listings using over 30 specific filters to identify up to 30 matching competitor properties. Based on this comparison, it generates asking-price benchmarks including a selling price, fair market price, and out-of-market price. For developers integrating these capabilities, see the Comparables and valuation API documentation in English.

What do selling price, fair market price and out-of-market price mean in CASAFARI?

These three metrics are asking-price benchmarks designed to guide a property’s pricing strategy. The selling price suggests a price point for a faster transaction, while the fair market price reflects the average asking price of comparable active listings. The out-of-market price indicates the threshold above which a property is overpriced relative to direct competitors.

Market conditions dictate pricing adjustments for property listings. Scarce supply or steadily rising market values support setting a higher asking price. Conversely, low buyer demand or an extended average time on market indicates that lowering the asking price is necessary for a timely sale.