There are several reasons why it is beneficial to have your property valued on a regular basis: 

1. Keeping Your Property’s Market Value Up to Date
   The value of a property can change over time due to market developments, economic conditions, or changes in interest rate policy. Regular valuations help determine the current market value of your property, which is particularly important when selling, refinancing, or arranging finance. 

1. Financial Planning
   A property valuation supports effective financial planning, for example when refinancing an existing mortgage or reviewing your financing options. 

1. Wealth Assessment
   Regular valuations provide a clearer picture of your overall assets and help you monitor changes in your wealth over time. 

1. Insurance Purposes
   A valuation helps ensure that your property insurance accurately reflects the current value of your property and provides appropriate coverage. 

1. Tax Considerations
   The value of a property can have tax implications. Keeping your property's valuation up to date can help you make informed decisions regarding tax-related matters.

Hedonic Valuation Method

The hedonic valuation method is a comparative approach used to assess the value of residential properties. It is based on the sales prices of comparable properties and analyses a range of characteristics that influence value. As a result, it is the most widely used method of property valuation in Switzerland.

The underlying database comprises more than 20,000 arm’s length property transactions each year, representing an estimated half of all property sales in Switzerland. 

Comparable Sales Method

The comparable sales method is based on the principle of determining a property's market value using statistical analysis of recent sales prices achieved for comparable properties. A distinction is made between direct and indirect comparison.

In a direct comparison, the value-influencing characteristics of the comparable property closely match those of the subject property. In an indirect comparison, these characteristics differ and appropriate adjustments are made to reflect the differences. 

Residual Value Method

The residual value method is a land valuation approach that is primarily used when suitable comparable sales data is not available. It is commonly applied in regions where land values are particularly high.

Under this method, the value of development-ready land is derived from the estimated value of a feasible development that complies with local zoning regulations. The land value is then calculated by deducting all development and construction costs from the projected value of the completed development. 

Income Capitalisation Method

This method is commonly used for income-producing or rented properties. It is based on the income the property is expected to generate in the future.

Rental income and operating expenses are analysed to determine the property's net income. This net income is then capitalised using an appropriate capitalisation rate to establish the property's market value. 

Cost Approach / Real Value Method

Under the cost approach, also referred to as the real value method, the land value and building value are assessed separately.

The land value is typically determined using comparable sales data, while the building value is calculated based on construction or replacement costs less depreciation. The overall property value is derived from the building's current value, associated ancillary costs, and the land value.

When assessing the building, factors such as volume, insurance values, or relevant construction standards are taken into account. Depreciation may result from technical factors, such as age or physical deterioration, as well as economic factors, including reduced functionality or outdated construction methods.

The land value is influenced by factors such as location, local price levels, and plot size.

A premium price refers to an amount that a buyer is willing to pay above a property's objectively assessed market value due to personal preferences or emotional factors.

This situation often arises when a property possesses unique characteristics that are particularly attractive to a specific buyer. Examples may include an exceptional location, distinctive architectural features, sentimental value, or a strong personal connection to the property.

As a result, the purchase price achieved may exceed the market value determined through conventional valuation methods. While market value reflects the price that could typically be achieved under normal market conditions, a premium price represents the additional amount an individual buyer is prepared to pay because of the property's special appeal.

Premium prices are most commonly encountered in highly sought-after locations, unique properties, or situations where demand significantly exceeds supply.

The price of a property is the amount of money that a buyer is willing to pay and a seller is willing to accept in a transaction.

The value of a property, on the other hand, refers to its intrinsic or underlying worth. It represents what the property is objectively worth based on a range of valuation factors, such as location, size, condition, features, and prevailing market conditions.

In practice, a property's price and value do not always coincide. A property may be sold for a price above its objectively assessed value, for example due to exceptional demand or because a buyer is willing to pay a premium for specific features. Conversely, a property may sell below its market value, for instance in the case of a distressed or time-sensitive sale.

In simple terms: price is what someone pays; value is what something is objectively worth.

Experience shows that a property's market value and its actual selling price can vary depending on market conditions and location. In particularly sought-after residential areas and seller's markets, where maximum prices are often achieved, the selling price may differ significantly from the property's assessed market value.