Review & Purchase
What are important criteria in property valuation?
Important criteria in property valuation can be grouped into location, property quality, legal framework, and economic performance, although these dimensions should not be considered in isolation. The macro-location includes region, municipality, tax attractiveness, labor market and infrastructure. The micro-location describes the neighborhood, noise exposure, view, sunlight exposure, topography, accessibility and immediate surroundings. Both levels shape demand and therefore willingness to pay.
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16.12.2025
2 min
Property quality includes year of construction, construction method, energy standard, logical floor plan, space efficiency and up-to-date fittings. A well-designed layout, high-quality materials and a solid energy condition increase value, while deferred maintenance, moisture issues or poor natural lighting reduce it. Planned or overdue renovations must be taken into account in the valuation, since they affect both current and future value.
Legal factors often have a strong impact but are less visible. Easements, building rights, lifetime residential rights, rights of way, listed-building status, floor area ratios, boundary setbacks and zoning regulations limit use or create potential. In condominium ownership, the bylaws, reserve fund, upcoming resolutions and the quality of management are also relevant because they shape future costs and flexibility.
For income properties, economic performance is central. Market rents, vacancy, tenancy law, maintenance costs and the quality of lease agreements determine sustainable income. The capitalization rate and interest rate environment set the framework in which income is converted into values. Tenant mix, lease terms and indexation also influence risk and thus the valuation.
Temporal aspects must not be neglected. Short-term market fluctuations, planned infrastructure projects, neighborhood developments or changes in spatial planning and taxes can increase or decrease the value in the coming years. Therefore, the valuer must clearly define the valuation date and at the same time make a plausible assessment of the foreseeable development.
In the end, an overall picture emerges from hard data and market knowledge. A good valuation documents assumptions and sources, highlights uncertainties and provides a comprehensible value range instead of false precision. This creates a solid basis for purchase, sale or financing.
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Review & Purchase
What are ancillary costs when buying property?
Ancillary costs when buying property are all expenses that are incurred in addition to the purchase price and must be planned separately for budgeting and financing. These include notary and land register fees, which vary depending on the canton and tariff schedule, as well as the property transfer tax, which is levied in many cantons. Also to be considered are costs for creating or assigning mortgage deeds, official certifications and any registration fees.
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Review & Purchase
What is market value?
Market value is the price a property is likely to fetch on the open market at the valuation date. It assumes a sale in the ordinary course of business, without compulsion and with a reasonable marketing period. Market value reflects supply and demand, location quality, the condition of the property, as well as legal and economic framework conditions. It is therefore a snapshot that can change with the market.
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Review & Purchase
How is the value of a property determined?
The value of a property in Switzerland is derived using recognized valuation methods that take the type and use of the asset into account. For owner-occupied residential property, a hedonic valuation is often used; it analyses thousands of comparable transactions and statistically weights location, property and equipment features. For income-producing properties, the income approach or DCF method is usually central, deriving a capitalized market value from expected future rental income and costs. For single-family houses with particular characteristics, the replacement/asset value can be used as a supplement, which differentiates between construction and land components.
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