This is one of the most important questions to ask before buying a property. The seller’s asking price does not necessarily correspond to the property’s real market value, and comparing it only with other homes currently for sale can be misleading.
To determine whether a property is fairly priced, buyers should consider several factors: price per square metre, location, property characteristics, condition, energy efficiency and future costs. The principle is simple: a home costs what the seller asks, but its value depends on what its characteristics actually justify.
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Price per square metre, location and property features
The first figure to calculate is the price per square metre, obtained by dividing the asking price by the property’s surface area. It is only a starting point.
The result should be compared with similar properties in the same area. In Italy, the OMI property-value database operated by the Revenue Agency provides reference ranges based on location, property type and condition. These figures are useful as a benchmark, but they are not a precise valuation of an individual property.
Location can have a major impact on value: proximity to city centres, public transport, schools, hospitals, shops, green areas and parking facilities should all be considered. The future development of an area also matters. New infrastructure, urban regeneration projects or new services can affect property values over the medium term.
Finally, the property should be compared with genuinely similar homes, considering size, floor, elevator, orientation, balconies or terraces, parking or garage, views, year of construction and the characteristics of the building.
Property condition, energy efficiency and building costs
The second major factor is the condition of the home. A property advertised at an apparently attractive price may require tens of thousands of euros in renovation work to reach the standard of an already refurbished property.
Buyers should therefore examine utilities and systems, windows, flooring, bathrooms, kitchens, façades, roofs, elevators and the general condition of the building. The estimated cost of any necessary work should be added to the purchase price to obtain a realistic assessment.
In 2026, energy efficiency is also becoming increasingly important. Insulation, windows, heating systems, air conditioning and energy-generation systems affect both comfort and future running costs.
The same principle applies to the building as a whole. Before purchasing, buyers should check regular maintenance costs, building accounts, approved extraordinary works and projects currently under discussion. A façade renovation, roof replacement or elevator upgrade can turn an apparently affordable property into a significantly more expensive investment.
The real cost of buying a home
The asking price does not represent the total cost of purchasing a property. To determine whether a home is genuinely affordable, buyers should also consider taxes, legal and notarial fees, real-estate agency fees where applicable, renovation costs, furnishing and potential extraordinary building expenses.
Taxation should also be assessed before making an offer. In Italy, where the relevant legal requirements are met, the “price-value” system allows certain property taxes to be calculated using the cadastral value rather than the actual purchase price.
At this point, the total cost should be compared with that of equivalent properties. It is not enough to know that an apartment costs euro 250,000: buyers need to understand how much it would cost to purchase and bring a comparable property to the same standard.
The comparison should therefore focus on homes in the same area and market segment, taking into account size, condition, floor, services, additional spaces, energy efficiency and overall building quality.
The home-buying checklist
Before making an offer, a prospective buyer should be able to answer at least these questions:
- What is the price per square metre?
- How much do genuinely comparable properties cost in the same area?
- Is the asking price consistent with available market benchmarks?
- How much do location, transport links and local services contribute to the value?
- What condition is the property in?
- How much would any necessary renovation work cost?
- What is the property’s energy rating and what running costs can be expected?
- How much are the regular building or condominium charges?
- Are any extraordinary works planned or already approved?
- What taxes and additional costs apply to the purchase?
- What will the property actually cost once purchased and brought to the desired standard?
- Are there similar properties offering better value for the same overall cost?
If these questions can be answered clearly, the buyer already has a much stronger basis for determining whether the asking price is reasonable.
The right price is not necessarily the lowest price
Determining a property’s value does not necessarily mean finding the cheapest home. A more expensive property may actually offer better value if it is in a better location, requires less renovation, consumes less energy and has lower building costs.
Conversely, a low asking price may conceal significant future expenses or characteristics that reduce the property’s long-term market value. But the right question, therefore, is not simply “How much does this home cost?”, but “How much will it really cost me, and what am I getting in return?”
In 2026, assessing the value for money of a property means considering price, location, features, condition, energy efficiency and future costs together. Only after examining all these elements can a buyer determine whether the asking price is genuinely fair.
