To ensure a safe and profitable investment, it's essential to carry out a property valuation prior to purchase. This enables you to assess the property's condition and identify any problems that could lead to additional costs or reduced profitability.
Here's a detailed guide to the steps involved in carrying out a pre-purchase survey.

Step 1: The first visit to the property

During the first visit, investors should take the time to analyze the property as a whole. This will help identify visible features that could influence thebuying decision.

• Visual inspection of the premises: assess the general condition of the property, in particular the walls, floors, ceilings and windows. The aim is to spot any signs of deterioration, such as cracks or traces of damp.‍
• Examination of technical installations: check that electrical, plumbing and heating equipment is working properly. Malfunctions may require costly repairs after purchase.

Step 2: Complete technical expertise

A thorough technical appraisal is essential to get a clear picture of the property's condition. This stage often involves a property expert, whose keen eye can detect less visible defects.

• Diagnosis of the building's condition: the property expert examines the foundations, structure and solidity of the building in detail. He identifies any building pathologies such as structural cracks or water infiltration.
  
• Checking energy performance: an energy performance diagnosis (DPE) shows whether the property is well insulated and energy-efficient, a crucial point for investors looking to maximize rental profitability.

Stage 3: Legal and administrative aspects

The investor must also ensure that the property is legally and administratively compliant. Neglect at this stage can lead to legal problems after the purchase.

• Check title deeds: make sure the seller is the legal owner of the property, and that there are no outstanding mortgages or disputes.
  
• Compliance with local regulations: check whether the property complies with current building and planning regulations. This may include, for example, maximum heights, property limits, or energy renovation requirements.

Step 4: Assessing the property's potential

One of the most important aspects for a real estate investor is to determine the property's potential profitability. This can be done by analyzing the local market, but also by estimating the work required to optimize the property.

• Analysis of the local market: assess rental demand in the area, as well as market prices. A poorly located property can have a low rental yield, even if it's in perfect condition.
  
• Estimating the work required: if renovations or improvements are necessary, it's essential to obtain a cost estimate. These may include interior renovations, energy efficiency improvements or equipment upgrades.

Step 5: Negotiating the purchase price

Thanks to the information gathered in the previous stages, the investor is in a position to negotiate the purchase price. A well-conducted pre-purchase appraisal offers solid arguments for obtaining a price reduction.

• Argumentation based on the condition of the property: if the appraisal reveals defects or renovation needs, this can be used as leverage to request a lower price.
  
• Estimate profitability: use the results of the market analysis and work costs to estimate the net yield of the property. If this is lower than your expectations, you can adjust your offer accordingly.

Expertise, a guarantee for your investment

The pre-purchase property appraisal is a key step for any investor wishing to maximize the profitability and security of their investment. Whether during the first visit, with a technical appraisal, or through a legal analysis, each phase helps to better understand the strengths and weaknesses of the property. 

Final tip: take the time to examine every detail to protect your investment and avoid unpleasant surprises.

By following these steps, you put all the chances on your side for a successful real estate investment. Expert guidance is often the key to avoiding costly mistakes and maximizing the profitability of your purchase.