To determine the property value is an art for the real estate agents. It is not difficult for them, but it will be challenging when the investors have a low budget and buyer exceptions are high. In this article, we look at how real estate agents determine property prices and what will be their accuracy level. There are some steps to calculate the property value,
- Current market report
- Local knowledge and micro-market knowledge
- Knowing about the previous sale and current demands
- Value of place around the property
- Real estate agents goal
Current market report
When the agents sell any property to the client, they should be able to explain how property value was fixed for the certain property and give some comparison examples of previous property they sold. Buyers looking for a piece of evidence to substantiate your valuation. Compare your property value with another property value in the same area. That may have helped to find better solutions.
Local knowledge and micro-market knowledge
An agent selling some property in a particular place means, they should know the value of the place and how the property value will increase or decrease in a year. If the property is near a metro city, it may have a high value and agents should know every brick of the property. The place value is more important because it seems attractive to someone with more exciting things to do there.
Knowing about the previous sale and current demands
Before selling a property, you should analyze the property value of the previous sale and the current demands of the buyer. If you have a niche property and want to sell it for good value, you must find agents who are experts in that type of property. From the agent’s perspective, they should analyze the buyer’s exceptions to what their demands are. It is not only for giving accurate value, you must provide client details who may be interested.
Value of place around the property
The property value will be different based on where it is. A popular city has more value and an unpopular city has a low value. Popular cities generally have extensive systems for transport, sanitation, housing, and utilities. Depending on the personal needs, they’re looking for popular cities. The popular cities differed by three things that are,
- The result of population growth
Real estate agents goal
In general, a real estate agent’s goal is to assist the buyer and seller to buy a new property or sell a new property. When setting a new goal, you should make that process as possible, and you have to be able to measure it. For example, you’re determining the value for a home first, things that you will take into consideration are square feet of the property, the number of bedrooms, the number of bathrooms, and check whether any changes made recently, the age of the property.
Determining the property value is a most difficult process. Take a deep look at the location because the location plays an important role in real estate. Keep updating your knowledge and understand the client’s needs. Provide good services for the clients. That will be helpful for your portfolio will grow faster while you sleep well at night.
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