“Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” –Warren Buffet
Without a doubt, selling real estate property has been well-regarded as an excellent avenue for building wealth or financial freedom.
However, selling real estate property is not as straightforward as one would wish it to be. In fact, there are quite a lot of factors that would either help you sell the property faster or have it stagnate in the real estate market listing. One of the keys determining factors that would play a contributing factor towards the success or failure of a real estate property is the fetching price. As the popular home selling adage of Karen Bigos would say, “Price it right, it sells overnight. Price it wrong, it stays on too long!”. With this in mind, home sellers would attract more offers from real estate investors and prospective homebuyers if they gave their properties an attractive fetching price.
However, this is not to say that you should go on an arbitrarily give your real estate properties the lowest price you could possibly think of. While this might facilitate a speedier sale, your property is going to miss on a potentially higher revenue. When it comes to pricing your real estate property, a lot of factors come into play. Before you plan on selling your property, have a look at the factors that would affect its price first. So that whether you are selling your unit in serendra bgc or your homes elsewhere, you would be able to price it as accurately as possible without losing potential offers or missing out on better returns.
1.) Demographics
Sure, you might think that a particular community’s population would have little to do with your fetching price. But, as it turns out, the demographics would play a pivotal role in determining what kind of price your property would potentially have. Demographics consist of the data that would describe the composition of a population and would include details such as age, race, gender, migration patterns and population growth. As an investor, demographics play a key factor as it would likely affect the demand for second homes as people start to retire or the demand for larger homes if incomes are significantly higher with expanding families.
2.) The Economy
No doubt, the economy would play an incredibly significant role in affecting real estate prices. More often than not, the economy leverages a particular sector’s purchasing habits–so much so that the healthier it is, the more competitive your price can potentially be. It affects the value of real estate and is generally measured by the employment data, manufacturing activity, prices of goods and GDP. Do note, however, that the cyclicality can have a myriad of effects on the different types of real estate. With this in mind, as an investor, it is best if you remained cognizant and sensitive to the economic cycle.
3.) Local Legislation
Government policies, subsidies and local legislation would all greatly affect real estate properties. For one, the government might choose to heavily tax real estate property transactions which can greatly affect the behavior of the buying public. Moreover, deductions, tax credits, and subsidies are also just some of the ways the government may boost the demand for real estate temporarily. These incentives would help you determine whether there are changes in supply and demand. It would also help you sniff out those potentially false trends.
In conclusion, while this article might have outlined some of the significant and high-level factors that would come into play when it comes to real estate market prices, do note that more complex aspects would also be involved. But a clear understanding of these factors is necessary to create a comprehensive assessment and evaluation of a potential investment.
