News
Key factors in determining the correct price of housing
12.02.2009
To determine the initial price of a home is one of the most important factors in achieving a deal for the sale under conditions similar to those we have set. For this purpose it is necessary to work in cooperation with the broker to enable the best to study the market in the present circumstances, and through this to determine the most accurate fair market value of the property.
Canadian broker Evan Seydzh outlines in his personal blog several models for determining the price. In this respect, there are different tactics, which vary depending on whether house or apartment, depending on their location, quality and performance.
The houses can vary in value depending on how the property is new in what court has, what is its quality and functionality, whether and what repairs were made, his statement and the surrounding neighborhood and others. If the house is really bad and should be destroyed, then it may reduce the value of the land. In the houses has to be made a preliminary assessment by a specialist, to no surprises when you start the actual inspection, he asserts.
In his apartment influenced significantly by similar properties sold so far in the same building on the basis of square meters price changes can be made depending on time of last sale, the size of dwelling, location, view, show , mezhdublokovoto space, parking, etc. Each residential block is relatively unique, so the most accurate comparisons are made only with properties in the same building. Valuation of houses allows more freedom than on other parts of the same neighborhood.
If the last sale of the house in the same building for some time has passed, you may find the apartments sold in various buildings in the area and to assess what changes occurred in the price since then and this change to take into account when assessing the properties subject of our transaction. Sometimes a property may be located on the opposite side of our street, but adjoins the region as a completely different quality and in this case it would not serve as a fair comparison, says Seydzh.
Seydzh gives some practical tips for determining the price of property:
Check out the market
To explore similar and recent sales in the same region is essential. Feel free to make comparison with past sales, but note how prices have changed since then. Also make a comparison with similar markets. If your area made no recent transactions can take as an example certain neighborhood sales that are comparable to your.
What is the current market situation?
In a slow market, driven by buyers, the seller will be more inclined to concessions during negotiations. On the other hand, when "hot" sellers market your offer must be sufficiently attractive, even to be taken into account.
If the market is relatively balanced, however, may be difficult to determine the starting price before the start of negotiations. One possible approach is to let the other party to propose a first possible price.
How long the property stood in the market?
Usually, the longer the property was for sale, the more inclined to negotiation would be the seller. Use this factor as a priority in your purchase.
What is the reason for selling?
Price itself does not depend on the reason for sale, says Seydzh. On the other hand the potential tendency to negotiating the seller is very dependent on it. If the owner needs to sell, your chances to negotiate better deals are bigger. If he does not need so urgently of the sale, then its main motivation is profit, and perhaps you will have to pay extra to buy that property.
What is the cost of the property owner?
Price at which the current owner acquired the property does not affect its current market value. However, it can help you determine your bid. However, not all pay attention to this factor, but only as an incidental note others.
Are there any costs that will need to make the repair?
Money to be spent for repair of the dwelling must be considered when the initial price. Perhaps your broker can help you calculate any costs that have to do for new flooring, new kitchen furniture, etc.
Conditional Offer
You may be required to pay some additional amount if your proposal is dependent on any other conditions that delay or complicate the purchase. Some conditions would cost you more than others. Consult your broker to find out how the price may be affected in a particular case.
Competitive bids for a property
In general, the price you're willing to pay should not be influenced by competing offers for the same property. Your best strategy would be to determine the maximum price you are willing to pay for this property and stick to it. When deemed necessary, you must be willing to give up.
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