All customers have one thing in common: they do not want to sell their property at below price than the market price. Whatever the condition in the real estate market is prevailing, particularly if it is frothy, it is essential to make sure that you get the right price. Though, how can you identify that you are making a fair deal before making an offer, especially when the market is not favorable?
Check the following constituents to assess the real value of any house so that you can make the right investment decision.
Newly Sold Property
Two similar properties are when two houses are identical in terms of quality of construction, size, neighborhood, condition, and availability of the facilities. For example, a ten marla recently constructed house with a garage should be priced almost at the same level as another ten marla house in the same neighborhood. Consequently, it is necessary to look at leading property portals to match the prices of different properties. Though, for more specific information, you must meet an experienced and professional real estate agent.
Check Comparable Properties
Once you discuss with a real estate agent, you can visit comparable houses and get a real good idea of a scale, so that you can compare the property you are thinking to invest in. You can usually distinguish the properties and see what appears to be a fair price. Wise sellers always price their properties similar to market comparable if they want to be competitive.
Check unsold comparable too
When you look at the number of similar properties, please do not neglect to check the houses that are taken off the market because they did not sell at the given price. Most apparently, these properties are over-priced. A smart decision would be to see several comparable properties on the market, particularly if most of them are vacant, prices must be lower. You can also have a chit chat with your realtor to find out the average time it takes for a house building to be sold.
Price appreciation and Market conditions
While comparing the properties, you must also know about the price trend, whether prices have been increasing or decreasing recently. In a seller’s market, properties will possibly be somewhat overpriced, and in a buyers’ market, properties are typically underpriced. Consequently, property prices depend upon where the market currently is on the real estate boom and bust curve.
Real estate agent opinion
Without even examining the data, your real estate agent is likely to have the experience, and they can make quite good educated guesses about whether the property is adequately priced or not and what the offering price should be.
Does the price seem fair?
If you are not satisfied with the property, the price will never appear fair, even if you get a bargain. Though, if you give a little over market value for a house you love, you will not really care in the end.