The Asking Price Is Not the Real Value
Romania’s real estate market operates without a public database of actual transactions. In this context, prices displayed on real estate listing websites are often mistakenly considered reference values, even though they do not always reflect market reality.
When browsing property listings online, one fundamental aspect must be considered: the listed price is only the seller’s asking price, not the transaction price. And between these two, there can be a significant difference.
1. How Are Listing Prices Set?
- Seller’s expectation – Most listing prices are set by property owners, who often have unrealistic expectations about the true market value of their property.
- Comparison with other listings – Many sellers set their prices based on other similar ads, without verifying whether these properties actually sold at those prices.
- Negotiation is expected – In practice, listing prices are often 5-20% higher than the final sale price, allowing room for negotiation.
- Subjective factors – Many owners overestimate their properties for emotional reasons (“It’s a good area,” “I invested a lot in renovations,” “I’m not in a hurry to sell”).
2. How Is Market Value Determined by a Certified Valuer?
An ANEVAR-certified valuer does not estimate value based on the seller’s expectations. Instead, they apply rigorous methodologies and analyze concrete market factors.
A valuer uses one or more of the following methods to determine a property’s true market value:
- Market Approach (Comparable Method) – Analyzing recent transactions of similar properties, adjusted for real differences between them.
- Income Approach (Capitalization of Income) – Determining a property’s value based on its potential income generation (often used for commercial properties).
- Cost Approach – Evaluating the replacement or reconstruction cost of the property, adjusted for physical and functional depreciation.
Unlike listing prices, the market value estimated by a valuer reflects the most probable price at which a property can be sold in a balanced market, considering real supply and demand—not just the seller’s expectations.
3. Key Differences Between Listing Prices and Market Value Estimated by a Valuer
| Aspect | Listing Prices | Market Value Estimated by a Certified Valuer |
|---|---|---|
| Who determines the value? | Property owner or real estate agent | The valuer, based on clear methodologies |
| Based on? | Seller’s expectations, comparison with other listings | Market analysis, recent transactions, property characteristics |
| Includes negotiation? | ✅ Yes, the price is often higher than the actual sale price | ❌ No, it reflects the most probable transaction value |
| Accepted by financial institutions? | ❌ No, not recognized for loans/mortgages | ✅ Yes, accepted by banks, notaries, courts, and financial institutions |
| Legal factors (mortgages, disputes, encumbrances)? | ❌ Usually not mentioned in listings | ✅ The valuer analyzes and takes these aspects into account |
| Accuracy of value determination? | ❌ Subjective, with potential large differences from the final price | ✅ Based on rigorous analysis, with reduced margin of error |
4. Case Study: Listing Price vs. Real Market Value
However, after obtaining a valuation report from a certified valuer, the client discovered:
- Recent transactions in the area were actually between €95,000 and €100,000.
- The apartment had legal issues – it was not properly registered, complicating the sale and lowering its market value.
- The seller initially asked for €115,000, but after negotiations and valuation-based analysis, they accepted €98,000.
The result? The client avoided an overpriced purchase and saved over €15,000 by consulting a certified valuer
5. How Can You Protect Your Investment?
- Do not take listing prices as real values – They are only asking prices, not actual transaction values.
- Consult a certified valuer – A valuation report helps determine the real value of a property and negotiate effectively.
- Don’t ignore legal aspects – A valuer checks legal documentation and encumbrances, reducing hidden risks.
- Stay informed about the market – Analyze price trends and the gap between supply and demand.
Conclusion: Estimated Value vs. Desired Price
- Listing prices are not real values—they reflect only the seller’s expectations.
- A certified valuer provides a realistic value based on internationally recognized methods.
- If you want to buy or sell correctly, rely on a professional valuation, not assumptions.