- Thread starter ade
- Start date
how to value house
I beleive the value in the DR is how much you are comfortable with paying for the property. I think we need to remember where we are, unfotunately it is a third world country. I am very happy with my purchase I bought what I wanted for me. My husband is Cuban and lost a great deal.
?
In that case (only knowing the American system of percent down, percent financed, usually for long terms) how does it work? Do people really come up with all that cash? Or is it much less cash than I imagine?
Generally property here is purchased using cash. Local financing, while available, is too expensive. Much better to finance using a US based bank if you have that option.
Others can let you know the exact mechanism of using DR banks, but I think you will find that method unreasonable.
Others can let you know the exact mechanism of using DR banks, but I think you will find that method unreasonable.
Houses in DR are valued according to the following method:
if it is a house on a lot:
As an example lets value the house listed in the link and compare it to the asking price:
SuperCasas.com - dominicana - propiedades, casas, villas, apartamentos, solares - supercasas
The list states the house has 280 m2 of land (I picked this house because I know the average asking price for meter of land in the area ~DR$5000)
280*5000 = 1,4000,000
All told the house looks like it is 2nd grade construction (de segunda):
215 * 25,000 = 5,375,000 (DR$25,000 is a fair price for a meter of 2nd grade finished construction)
extras:
Jacuzzi + 100,000
2 extra parking spaces + 200,000
upkeep and overall look and condition +150,000
total price of the property:
1,400,000 + 5,375,000 +100,000 + 200,000 +150,000 = 7,225,000
Asking price = 9,000,000
calculated price = 7,225,000
over valued = 1,775,000 or ~20% of property value and this is common practice. Everyone likes to haggle and sellers like to be able to drop 10-15% of the sale price to entice the would be buyer, so, keep that in mind when shopping for homes in DR.
There are a few more things that need to be looked at and addressed when considering a home for purchase and price is certainly NOT the most important thing. Although, price is high up on the list of thing to consider , like factor, location, neighbors and other such things should be considered and prioritized. Note this is just a general guide, a rule of thumb, to quickly assess if the property is worth you time and energy or is the seller just mad
*grade is either:
NotLurking
if it is a house on a lot:
- Average selling price of a meter of land in the zone the house is located multiplied by the size of the lot in meter squared.
- current price of a meter of construction, according to construction grade* multiplied by the size of the construction in meter.
- plus the value added by any special feature of the house (eg. jacuzzi, special garden, walk-in closet etc..)
- house overall condition and up keep is also considered although the value is terms of money is not a major factor in the final price of the home
As an example lets value the house listed in the link and compare it to the asking price:
SuperCasas.com - dominicana - propiedades, casas, villas, apartamentos, solares - supercasas
The list states the house has 280 m2 of land (I picked this house because I know the average asking price for meter of land in the area ~DR$5000)
280*5000 = 1,4000,000
All told the house looks like it is 2nd grade construction (de segunda):
215 * 25,000 = 5,375,000 (DR$25,000 is a fair price for a meter of 2nd grade finished construction)
extras:
Jacuzzi + 100,000
2 extra parking spaces + 200,000
upkeep and overall look and condition +150,000
total price of the property:
1,400,000 + 5,375,000 +100,000 + 200,000 +150,000 = 7,225,000
Asking price = 9,000,000
calculated price = 7,225,000
over valued = 1,775,000 or ~20% of property value and this is common practice. Everyone likes to haggle and sellers like to be able to drop 10-15% of the sale price to entice the would be buyer, so, keep that in mind when shopping for homes in DR.
There are a few more things that need to be looked at and addressed when considering a home for purchase and price is certainly NOT the most important thing. Although, price is high up on the list of thing to consider , like factor, location, neighbors and other such things should be considered and prioritized. Note this is just a general guide, a rule of thumb, to quickly assess if the property is worth you time and energy or is the seller just mad
*grade is either:
- de primera (1st grade - best), it refers to construction method and the grade of the finishing material (Caoba, marmol, jambas y calida de ventanes, puerta etc...)
- de segunda (2nd grade - medium quality) the quality of the material and workmanship usually falls short of first grade (granito, ceramica, caoba --but usually not finished properly, etc...)
- de tercera (3rd grade - finishing material and workmanship is mediocre at best )
NotLurking
here is the way to do it...
if you are not maxxed on your equity line.. do so now..
ditto all credit cards
except American Express
Keep one local bank account with a USA line of credit
Send all family photos to next in order of sucession
shut down house as if leaving for vacation.. give keys to one or both neighbors on either side
just in case a pipe bursts or they see anything suspicious..and that you will be back in 2 weeks...
discontinue payment on mortgage, taxes, credit cards
Send all money to USA account and as a credit balance on American Express
do not have a yard sale/
ask your neighbors to pick up your mail.
leave your car in your garage
Book an all inclusive two week trip to Punta Cana
Do not show up for your return flight home
Welcome to our Island
bring half the clothes and twice the money
and for gawd's sake do not ship your cars........ we have plenty.. really...
if you are not maxxed on your equity line.. do so now..
ditto all credit cards
except American Express
Keep one local bank account with a USA line of credit
Send all family photos to next in order of sucession
shut down house as if leaving for vacation.. give keys to one or both neighbors on either side
just in case a pipe bursts or they see anything suspicious..and that you will be back in 2 weeks...
discontinue payment on mortgage, taxes, credit cards
Send all money to USA account and as a credit balance on American Express
do not have a yard sale/
ask your neighbors to pick up your mail.
leave your car in your garage
Book an all inclusive two week trip to Punta Cana
Do not show up for your return flight home
Welcome to our Island
bring half the clothes and twice the money
and for gawd's sake do not ship your cars........ we have plenty.. really...
You can try all the formulas you want, but the bottom line is: what a willing buyer and a willing seller will agree upon. You can be a seller and calculate an asking price, but if no buyer is willing, it is overpriced. Same with a buyer, you can calculate a value and make an offer, but if nobody accepts the offer, you've underbid.
Houses in DR are valued according to the following method:
if it is a house on a lot:
- Average selling price of a meter of land in the zone the house is located multiplied by the size of the lot in meter squared.
- current price of a meter of construction, according to construction grade* multiplied by the size of the construction in meter.
- plus the value added by any special feature of the house (eg. jacuzzi, special garden, walk-in closet etc..)
- house overall condition and up keep is also considered although the value is terms of money is not a major factor in the final price of the home
As an example lets value the house listed in the link and compare it to the asking price:
SuperCasas.com - dominicana - propiedades, casas, villas, apartamentos, solares - supercasas
The list states the house has 280 m2 of land (I picked this house because I know the average asking price for meter of land in the area ~DR$5000)
280*5000 = 1,4000,000
All told the house looks like it is 2nd grade construction (de segunda):
215 * 25,000 = 5,375,000 (DR$25,000 is a fair price for a meter of 2nd grade finished construction)
extras:
Jacuzzi + 100,000
2 extra parking spaces + 200,000
upkeep and overall look and condition +150,000
total price of the property:
1,400,000 + 5,375,000 +100,000 + 200,000 +150,000 = 7,225,000
Asking price = 9,000,000
calculated price = 7,225,000
over valued = 1,775,000 or ~20% of property value and this is common practice. Everyone likes to haggle and sellers like to be able to drop 10-15% of the sale price to entice the would be buyer, so, keep that in mind when shopping for homes in DR.
There are a few more things that need to be looked at and addressed when considering a home for purchase and price is certainly NOT the most important thing. Although, price is high up on the list of thing to consider , like factor, location, neighbors and other such things should be considered and prioritized. Note this is just a general guide, a rule of thumb, to quickly assess if the property is worth you time and energy or is the seller just mad
*grade is either:
- de primera (1st grade - best), it refers to construction method and the grade of the finishing material (Caoba, marmol, jambas y calida de ventanes, puerta etc...)
- de segunda (2nd grade - medium quality) the quality of the material and workmanship usually falls short of first grade (granito, ceramica, caoba --but usually not finished properly, etc...)
- de tercera (3rd grade - finishing material and workmanship is mediocre at best )
NotLurking
ok guess from others that there is no way to calculate but your idea seems fair. Our build is good quality materials but is not finished our architect (dominican living in NY) says we must calculate similar to what you have suggested to get an idea of price guide - with this info we can then progress and know what we will accept...guess the buyer will be from that area now living in US or europe with a desire to have a luxury party pad back home - i guess, it's not going to be a local buyer! We will have lost money but we don't have to lose everything LOL
The method I described for property valuation is derived from the general method used by Dominican property appraiser used by Dominican banks. Regardless of what some poster might say, Dominican banks invest real money based on similar property valuation methods, of course, a bit more detailed than the method outline. As a rule of thumb, the method I outline is a good approximation of the property's real market value (maybe +-10-15%, remember it is an approximation). I've bought and sold over 3 properties (ok 5) in DR in the past 11 years and I've always use this method to assess property value and it has worked quite well for me. Your mileage may vary. Good Luck.
NotLurking
NotLurking
Thanks - reckon we'll use this to calculate a price and decide to take a good or bad offer depending what comes in! Must now find out what the price of land per m2 is in Sanaiga, San Cristobal
Notlurking ,
What price per SM do you put on 1st, 2nd,3rd grade construction ? Is there a premier grade too?
I see that you suggest adding items like Jacuzzi - does the same apply for pools, generators and house , cisterns etc
Thank you for your method!
Olly
What price per SM do you put on 1st, 2nd,3rd grade construction ? Is there a premier grade too?
I see that you suggest adding items like Jacuzzi - does the same apply for pools, generators and house , cisterns etc
Thank you for your method!
Olly
1st ~RD$30-40k
2nd ~RD$20-29k
3rd ~RD$12-19k
The above table is a ballpark figure for every category and it depends on many factors. For example, say a house is located in Piantini, constructed of the very best material and craftsmanship money can buy. This Piantini home cold easily exceed RD$40k per m2 of finished construction. If you relocate this same house to, say, Los Minas, this ame house will NOT get the RD$40k+ per m2 that it would get in Piantini. House do command a price for meter squared of construction according to material used but other fact do offset the bracket the property being considered is calculated with; locations being the most influential factor. This is not to say that other factors are not as important like accessibility, neighbors, community and infrastructure (internet, power, water, garbage collection, pavement & such) in considering the overall value but again, location weighs very heavily in the overall value of the property.
Any added feature is an absolute plus and adds real dollars to the price of the property! Generator, pools, guess house, 2 kitchen, 1 bathroom per room, jacuzzi, hot-tubs, gardens, larger than usual lot for the area, etc., add to the asking price of a property.
NotLurking
2nd ~RD$20-29k
3rd ~RD$12-19k
The above table is a ballpark figure for every category and it depends on many factors. For example, say a house is located in Piantini, constructed of the very best material and craftsmanship money can buy. This Piantini home cold easily exceed RD$40k per m2 of finished construction. If you relocate this same house to, say, Los Minas, this ame house will NOT get the RD$40k+ per m2 that it would get in Piantini. House do command a price for meter squared of construction according to material used but other fact do offset the bracket the property being considered is calculated with; locations being the most influential factor. This is not to say that other factors are not as important like accessibility, neighbors, community and infrastructure (internet, power, water, garbage collection, pavement & such) in considering the overall value but again, location weighs very heavily in the overall value of the property.
Any added feature is an absolute plus and adds real dollars to the price of the property! Generator, pools, guess house, 2 kitchen, 1 bathroom per room, jacuzzi, hot-tubs, gardens, larger than usual lot for the area, etc., add to the asking price of a property.
NotLurking
I Live In Arroyo Hondo,I have 250 Meters of Construction,On 650 Meters of Land.
Using your descriptions,and formuli,I am worth about 9 million.
"Wanna buy my house?":cheeky:
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Using your descriptions,and formuli,I am worth about 9 million.
"Wanna buy my house?":cheeky:
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
thanks for the info very helpful. our house is built but not completed. The outside walls are rendered and we have yet to do the 3rd nd 2nd fixings. We have used high quality materials but I think too expensive for the area - the urbanization of the area hasn't really happened as promised so I guess we're looking at lower prices - any thoughts, I have pix ta
i would calculate the prices based on the average price per sqm in the area. add 1-50 us per m2 if it is a unique lot with a special view, location etc.
consider the m2 of construction and calculate by between 500 us per m2 up to 800 us per m2 depending on the quality of the construction.
pool should be worth anything between 8.000 us to 15.000 us.
hope this helps
consider the m2 of construction and calculate by between 500 us per m2 up to 800 us per m2 depending on the quality of the construction.
pool should be worth anything between 8.000 us to 15.000 us.
hope this helps
Property with unique selling points seem to move fast at high prices.
There is a huge WorldWide market for properties such as Balcones del Atlanico and similar.
Caribbean Vacation Resort & Beach Hotel | Balcones Del Atlantico - Balcones Del Atl?ntico
pi2
There is a huge WorldWide market for properties such as Balcones del Atlanico and similar.
Caribbean Vacation Resort & Beach Hotel | Balcones Del Atlantico - Balcones Del Atl?ntico
pi2