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Old 17.12.2013, 13:56
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House valuation /Engineer to evaluate property

I hope you guys don't mind if I ask another question here, which I think related and might be useful for the OP.
We're also in the process of getting a mortgage. My question is; how do we know the market value of the house except for the fact that some banks can send an expert to inspect and appraise the value? I was told that we should use our guts feel but I wonder if there's a more objective mechanism in place. The thing for us is; the house is very unique. It is an erdhaus with special design and we wonder if that design factor would increase or decrease the market value( which we know based on size, number of rooms, year built.)
Thank you in advance!
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Old 17.12.2013, 13:57
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Re: Buying a house with less than 20% of price as own funds: possible?

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how do we know the market value of the house except for the fact that some banks can send an expert to inspect and appraise the value? I was told that we should use our guts feel but I wonder if there's a more objective mechanism in place.
I was going to send you to start your own thread , but the questions is really good
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Old 17.12.2013, 14:02
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Re: Buying a house with less than 20% of price as own funds: possible?

The bank will make a risk-based valuation on the property and that will be the maximum they will lend to you.

They will also make recalculation payment estimates against your income using 5% interest rates.

The bank will value the property most likely lower than your valuation or what you're prepared to pay.
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Old 17.12.2013, 14:26
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Re: Buying a house with less than 20% of price as own funds: possible?

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I hope you guys don't mind if I ask another question here, which I think related and might be useful for the OP.
We're also in the process of getting a mortgage. My question is; how do we know the market value of the house except for the fact that some banks can send an expert to inspect and appraise the value? I was told that we should use our guts feel but I wonder if there's a more objective mechanism in place. The thing for us is; the house is very unique. It is an erdhaus with special design and we wonder if that design factor would increase or decrease the market value( which we know based on size, number of rooms, year built.)
Thank you in advance!
It is a very subjective market - and if the house is unique all the more so. Will uniqueness increase or decrease the value? Hmmmm... Roll the dice.

First thing - is resale a consideration for you? For many buyers it is not, as most Swiss only expect to leave a house feet first - but for those of us whose lives are less stable resale is something that has to be considered.

I've walked away from several 'unique' houses because I knew that although I liked the house there would be few other people to whom the house would appeal, especially at that price, and thus resale too big a risk.

The old adage "location, location, location" still trumps everything else in Switzerland - 30 min commute to a large metro employment center with good commuting infrastructure is valued across most housing types. Farther away from a metro center, or in a less desireable neighborhood, a 'unique' house might lose value.

Single family homes will hold value regardless of how unique, IMO, simply because so few are available and so few are being built.

At present, if the house is under 2 mio in a good location then the land value is really all that counts. At that price, most buyers will be willing to tear down a house that doesn't suit one's taste. If the price is higher than 2 mio, then the uniqueness of the house comes into play.

But are there more objective criteria? Not really - here I would be guided by your bank's assessment and your gut feeling.

Good luck!
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Old 17.12.2013, 18:32
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Re: House valuation

We had a third party evaluate our house and their appraisal was about 100k more than the bank evaluation as he came to the physical property and was able to be more specific with the parameters available. We submitted this evaluation to the bank and they in turn increased their evaluation accordingly.
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Old 17.12.2013, 18:39
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Re: House valuation

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We had a third party evaluate our house and their appraisal was about 100k more than the bank evaluation as he came to the physical property and was able to be more specific with the parameters available. We submitted this evaluation to the bank and they in turn increased their evaluation accordingly.
great tip! may I ask what kind of entity does this evaluations? how much did it cost you???
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Old 17.12.2013, 19:05
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Re: House valuation

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We had a third party evaluate our house and their appraisal was about 100k more than the bank evaluation as he came to the physical property and was able to be more specific with the parameters available. We submitted this evaluation to the bank and they in turn increased their evaluation accordingly.
You might have done better to reduce the buying price by 100k, a low bank valuation is good for a buyer !
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Old 17.12.2013, 20:26
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Re: House valuation

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You might have done better to reduce the buying price by 100k, a low bank valuation is good for a buyer !
We got the valuation before we put in an offer, and we offered much less than the asking price and it was accepted so we made out great in the end.

Angela - I will try to get the name of the company we used, I believe we paid 240 CHF but it was a "friend of a friend" rate, however I can't see the normal rate being much more.
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Old 18.12.2013, 00:01
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Re: House valuation

If you don't mind, please send the contact to me too. Thanks!
Quote:
- I will try to get the name of the company we used, I believe we paid 240 CHF but it was a "friend of a friend" rate, however I can't see the normal rate being much more.

Last edited by Ace1; 18.12.2013 at 09:55. Reason: Fixing quote
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Old 18.12.2013, 11:08
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Re: House valuation

Local architects normally provide this service- but to find one who is not biased towards the seller is not easy.
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Old 18.12.2013, 13:02
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Re: House valuation

We looked at an old house in Gebenstorf; owners wanted 750K. We found an architect/surveyor who came around to the house and did a survey.

His comment was that the house was only worth 400K (i.e. house was worthless and the 400K was really only the land price).

That, and the fact that the owners had 'donated' 30% of their land to the neighbours, made us run a mile.

It was really quite a quaint house, but I think when the owners finally sell it, it'll sadly just get demolished and replaced by a flat-roofed concrete box.
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Old 18.12.2013, 13:30
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Engineer to evaluate property

We are close to closing a deal to buy a house, but would like to go with an engineer / architect to make an evaluation of the building before we sign our lives away.

Can anyone recommend someone that could provide such a service? I did a quick search on the forum and only found one thread which felt like a total advert rather than a recommendation...

Does anyone have any advice in terms of what we should be asking the engineer to look at - eg heating, roof, structural issues etc?
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Old 18.12.2013, 13:49
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Re: House valuation /Engineer to evaluate property

Ask your mortgage advisor for a recommendation. Afterall, the bank also has a stake in the outcome.

Were we to do it again, I would have a Bauleiter, a construction manager, do an inspection rather than an architect. A construction manager knows bricks and mortar and the reality of building, whereas my experience so far has been that too many architects are more concerned with design than construction. When buying a house, the first question is whether the bricks and mortar are in good working order.

However if you are buying a house that is a total renovation job you might need an architecht to research regulations and give you an idea of whether you will even be allowed to do the renovations you have in mind. The house's value will very much depend on this. If house renovation is restricted, the value of the property plummets.
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Old 18.12.2013, 14:48
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Re: House valuation /Engineer to evaluate property

Thanks meloncollie - can you recommend someone? Anyone else?

BTW - my thread is not about valuation which I think the OP was asking for - mine is about an engineering evaluation.
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Old 18.12.2013, 15:08
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Re: House valuation /Engineer to evaluate property

HEV also does valuations.

www.hev-schweiz.ch

I'm not sure about the cost of if they do it for non-members. I think it's worth a call to your local HEV office to ask.
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Old 18.12.2013, 15:15
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Re: House valuation

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We looked at an old house in Gebenstorf; owners wanted 750K. We found an architect/surveyor who came around to the house and did a survey.

His comment was that the house was only worth 400K (i.e. house was worthless and the 400K was really only the land price).

That, and the fact that the owners had 'donated' 30% of their land to the neighbours, made us run a mile.

It was really quite a quaint house, but I think when the owners finally sell it, it'll sadly just get demolished and replaced by a flat-roofed concrete box.
I looked at several houses like that, it's value is actually less than land value as you have to factor in demolition costs & clearing the site. Being CH nothing if free. Of course the owners still believe their house is worth something so it never sells.
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Old 20.12.2013, 01:59
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Re: House valuation /Engineer to evaluate property

based on our recent experience,
1. all the banks know the local property value quite well.
2. but each bank has own mortgage strategy, market trend analysis and different degree on risk-tolerance.

in our case, with the "over-priced" house, different banks give different amount mortgage: some is 80% of the asking price with our affordability, some only gives 70% even 60% of the asking price. With the house price is in the normal price range, all the mortgage offer is very much the same.

so my advice is, go to talk with many banks then you know if the house is over-priced and even it is over-priced but you want it very much, can you afford it or not. Hope this help! and good luck!
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Old 23.12.2013, 19:28
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Re: House valuation /Engineer to evaluate property

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The thing for us is; the house is very unique. It is an erdhaus with special design and we wonder if that design factor would increase or decrease the market value( which we know based on size, number of rooms, year built.)
I remember there was this type of house on the market for years near Baden. They could not sell it despite the fact that it was in a low tax area. Then I saw it listed on the official kantonal website where properties are to be auctioned.

So I would be very careful with such a unique property.
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Old 23.12.2013, 22:19
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Re: House valuation /Engineer to evaluate property

Our company uses IAZI, they are an independet company that does valuations. Banks and insurance companiesx use them, too.
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Old 23.12.2013, 22:56
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Re: House valuation /Engineer to evaluate property

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I remember there was this type of house on the market for years near Baden. They could not sell it despite the fact that it was in a low tax area. Then I saw it listed on the official kantonal website where properties are to be auctioned.

So I would be very careful with such a unique property.
The property probably has zero value, so will be sold for land value only, happens quite often,
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