Real estate Investments and market valuations part I


Real Estate Investments: Market Analysis

One of the indisputable tools at the time of the planning of real estate investments, is the market analysis. Thanks to him it is possible to know if a property adapts to what is demanded, if one is paying the real price, or if, as a real Real Estate agent, it is worthwhile to invest time and money in offering it.

What is real estate valuation?

As discussed on the website Of Certicalia, is the process that studies the value of a property, considering its construction and soil. It identifies the good that would be valued and the method of valuation. In this article we refer to the method of comparison according to the market. This allows you to estimate the value of the property.

Real Estate Investments: Valuation of a property

That means, as discussed in the urban planning blog, that the values that are considered to carry out this study, must be determinants for the success or failure of its application. For example, an agent can sit in front of the portal you prefer and see which prices show the houses in a zone. And based on that build your analysis. But What if those reference houses are not being sold at a suitable price? So It is important not only to know what properties are offered in the area, but the ones that have actually been sold in the previous months and those that have been on sale for more than six months.

Professionalism and Real Estate investments

It Is an indispensable investigation to know the state and the evolution of the sector in a certain place or region. And the truth is that it brings benefits to different interests, according to the objectives to be followed. The professionalism of a real estate consultant is put into play if you do not use this value added. Simply because with it you can take care of one of the most important resources: the time. Both yours and your customers. It represents an effective guide to the uncertainty that can be perceived in the sector. The premise is that if a property (flat, apartment, house, chalet...) is at a suitable price, it is sold very quickly. Most of the time in less than a month.

Possible objectives of the study

  • To understand the demand that a property could have in an area, the price that is estimated in the market and the possible competition that is similar to that real estate.
  • To study the demand for properties of certain similar characteristics. For example, rustic houses or modern style.
  • Have truthful information on which to base negotiations, decisions or marketing actions.

Steps in developing a market analysis

  • Collect the right information (good source data, real. For example, at REMAX Golden Mile we have Property Registration data and other reliable tools.
  • Organize and analyze the data in order to find the conditions of the current market.
  • To determine the effect of the incorporation of new elements in these conditions.
  • To conclude with the professional recommendations in the assessment made with the study.

Steps in developing a market analysis

  • Collect the right information (good source data, real. For example, at REMAX Golden Mile we have Property Registration data and other reliable tools.
  • Organize and analyze the data in order to find the conditions of the current market.
  • To determine the effect of the incorporation of new elements in these conditions.
  • To conclude with the professional recommendations in the assessment made with the study.

The Environment

As discussed in this video OF RE/MAX University, it is recommended to assess the quality of the properties of the area, public services, neighbors, businesses, schools, shopping centers, pharmacies, etc. Also the use of the soil. Want to read more about the factors influencing the value of a property? See this article.

Real estate valuation is our added value

One of our added values lies in the knowledge we have of the real estate market in Tenerife, its trends and its evolution. For this purpose we use all our experience, knowledge and tools (for example the real data of the Property Registry, among others). The goal is to get those conclusions that will make you sell your property fast and in the best possible conditions. If you liked this article, and you are interested in this topic, we will soon speak more in detail of the real estate valuations. Subscribe to our newsletter, and don't miss it! Do You Want To sell a property? We help You to know its value, thanks to the complete market analysis that we put at your disposal. If you want to read more about why reform can revalue your home, click here. Contact us now and ask for free advice!