Who is Jesús Ruiz Vázquez and Why is He Relevant?
Jesús Ruiz Vázquez is the Divisional Metropolitan Director of Tasvalúo, a reputable company specializing in property valuation. His expertise and insights are crucial for homeowners looking to determine the optimal selling price for their property.
Market Value vs. Selling Price: Key Differences
Determining the right selling price for your home involves understanding both its market value and the selling price. Market value refers to the estimated price a property can fetch in the real estate market, considering its physical attributes and the economic and social context. In contrast, the selling price often includes promotions to attract buyers or compete in the market.
Market Value: A Professional Valuation
According to Ruiz Vázquez, market value is determined through a professional valuation that analyzes factors such as location, size, physical condition, potential for appreciation (plusvalía), land use type, and the prices of similar properties in the area. Additionally, the valuation considers the evolution of the real estate market.
Market Value vs. Fiscal or Catastral Value
It’s essential to distinguish market value from fiscal or catastral value. The latter is usually a percentage of the market value and serves primarily for tax purposes, such as calculating property taxes. While market value focuses on the real estate market, fiscal value is more related to taxation.
Relationship Between Market Value and Selling Price
Ruiz Vázquez explains that market value represents the actual market price for a property under normal conditions. Meanwhile, the selling price often includes promotions to encourage purchases, attract customers, or compete in the market. These promotions may involve discounts, payment plans, or other incentives.
However, these promotions do not alter the intrinsic market value of the property. Instead, they derive from applying discounts or special conditions to the market value to make the property more appealing for sale.
Strategic Pricing: Balancing Market Value and Selling Goals
In summary, Ruiz Vázquez emphasizes that the ideal selling price for a home should start with its market value but be adjusted strategically to account for market conditions, competition, and the seller’s objectives.
Key Questions and Answers
- What is market value? Market value, or commercial value, is the estimated price a property can fetch in the real estate market, considering its physical attributes and the economic and social context.
- How is market value determined? Market value is determined through a professional valuation that analyzes factors such as location, size, physical condition, potential for appreciation, land use type, and prices of similar properties in the area.
- What is the difference between market value and fiscal or catastral value? Market value focuses on the real estate market, while fiscal value is more related to taxation and usually a percentage of the market value for tax purposes.
- How does market value relate to the selling price? The selling price often includes promotions to attract buyers or compete in the market, while market value represents the actual market price for a property under normal conditions.
- How should I set the selling price for my home? The ideal selling price should start with the market value but be adjusted strategically to account for market conditions, competition, and your selling goals.
