How to evaluate a real estate property?
That it is of your main home or a rental investment, of a new or old good, there are very many tools and sources of information which makes it possible to know and to evaluate the value of a real estate. But all these tools and indicators are not worth. If you wish to know if you buy at the right price or if you want to know if there remains to you a “margin of negotiation” with the salesman, this guide will help you to know the good sources and to have the good reflexes as regards evaluation of the price of the real estate.
How is a selling price fixed?
The selling price of a real estate depends on several criteria; the price of the real market locally obviously but a rebate or a surcote can be applied in function in particular:
- The site even of the property. Is the property ideally located or not? served well by public transport? are the trade near without being too close either?
- The exposure of the property : is Southern or Northern, opposite a large bar of building?
- The quality of the services : one can note up to 20% of surcote compared to the price of the local market for a good whose services are top-of-the-range. CAUTION: still is it necessary that these services are in adequacy with the target of the market? a too top-of-the-range property in an incoherent zone will not find taking (at least not at the best selling price)
- Scarcity of the product : is there much or on the contrary few properties of this type in the zone of your research?
- The personal financial standing of the salesman : is it in a hurry to sell or not?
Trend of the price of the real estate
Each year for 10 years, of the newspapers have titrated in cover “lowers real estate… ”. However, for these same 10 years, the real estate prince rage has not stopped increasing and convincing us that this tendency will continue on the long term.
For which reasons?
Raise price of the grounds, increasingly expensive standards of construction, cost of building materials, lowers number of new buildings, increase in the population, lifespan of the population, numbers higher of separate couples.
Obviously, certain zones or cities can or will know periods of fall, but the general tendency remains bull.
To know if a city, or a geographical area will see its real price to evolve/move it, it is also necessary to take account of the great alteration work which is envisaged in the 10 years to come: creation of a new road etc…
Tools for evaluation at your disposal
1.IMMODIR LIMITED: our real-estate agents are on the ground.
Chat with them, look at the prices of goods displayed in the neighborhood AND ESPECIALLY actual selling price (that is to say, after negotiations) already give you a much clearer idea of property prices.
Internet abounds sites whose information is not always very fresh and especially high accuracy. The sites that tell you a price per square meter depending on some criteria that you have previously informed you will certainly price range of the local market, but not a specific market price.
3. Newspapers /magazines:
Dozens of newspapers publish annually a folder. Digging and analyzing specific sources of indicators and journalists who have written the article, we quickly realized the "lightness" of information and especially of the distance to the actual reality of the market price. Information on the real estate prices of these newspapers is, we believe, to take a step back and carefully;
To know and accurately assess the real estate prices in a city, so it is important to learn from good sources and to take account of the different rating criteria we talked about.