Real value of a property

The key point in the job of a real estate agent when selling an apartment is to coordinate an appraisal with the owner in order to determine the real value of a property.

After all, before turning to a real estate agent, almost all sellers try to sell a property on their own, and consequently determine its value based on similar offers on popular websites. Everyone wants to sell their apartment in the most profitable way possible, therefore the milestone is chosen, with the most expensive cost.

After an apartment is examined and evaluated by a real estate specialist, based on real proposals and the average cost of such objects in the city, it is important that the owner understands and accepts the reasoned opinion of the agent, so that there is no frustration and distrust.

If the owner is not satisfied with your arguments and will insist that the apartment be put up for sale at a price higher than was initially offered, it will be a “disservice” not only for the agent. The owner can also suffer significant losses in the future.

How to avoid mistakes when establishing the real value of a property?

We will understand it in order.

Principle 1

Buyers, unlike sellers, always start looking with the cheapest options. Therefore, the object (house, apartment, office, country house) at the highest price will be considered as a last resort, in any case.

This is fraught with the “freezing” of the object and in the future, it will be perceived as “unfinished”, a dysfunctional object that cannot be removed, nobody needs it, it “hangs” for a long time in advertising and nobody takes it.

Therefore, in a Tajarat Properties, the seller will always explain all the consequences of exaggerating the real value of a property. Notify about possible losses. They will propose to consider the real value based on the real objects available in the database.

Principle 2

The owner must understand that by exposing his apartment to an inflated price, he is playing into the hands of his competitors, as he reluctantly helps to sell other objects with a target value.

Principle 3

The peak of interest in a new object is the first 2-3 weeks from the moment of its first placement in advertising resources.

It is during this period that potential buyers who are most interested in buying pay attention to you. As a rule, these are buyers looking for an apartment in a certain area or even a house. By setting the price above the market, sellers personally transfer potential buyers to competitors. They are pushing to buy a cheaper apartment, even in a different area.

When the seller, disappointed with the long sales, after 3-4 months still agrees to reduce the home value of the property, those motivated buyers may not be, and the market will change significantly during this time, and you will have to wait again your chance.

Principle 4

Initially, it is necessary to communicate to the client that he does not deliberately underestimate the cost of the apartment, since they are subject to a contract, under which he undertakes to advertise, show the object. Find and take customer feedback, help collect the necessary documents for the sale, accompany the transaction. For this, you get a reward.

 The real estate agent has no interest in deliberately reducing his earnings, underestimating the cost of an apartment. Obviously, being able to offer an apartment to a target, rather than overvaluing, the real estate agent will do everything possible to find the most interested buyers who are willing to pay the real price.

Principle 5

As practice shows, when a real estate agent at the insistence of the seller is forced to advertise an object at an inflated cost, the object is sold for a long time. The seller gradually reduces the cost but considering market fluctuations and new conditions for the purchase of other objects, in the end it turns out that the object is selling below the price originally proposed by the real estate agent.

In this case, the losses are borne by the seller and the real estate agent. Explain to the client that, as a professional real estate professional, you are not motivated to artificially reduce the cost of an apartment (house, country house, plot), as the work on the object will be greater.

Real estate agents make a profit at the end of the transaction, so trust that they are also interested in the highest possible sale price.

Techniques to obtain a property at the best price.

Buying a property will always be something complicated and achieving the best price for it is the most difficult objective that we always set ourselves. Because of this we will give you some techniques that will help you get the right price for the home you want so much.

The time the property has been for sale.

If at the time of reviewing the time that the property has been for sale, you find that it exceeds a period of 6 to 8 months, it is likely that the price published by it is not in accordance with the real value, that is why it should be done an appraisal that clarifies the fair price of the property and then proceed with the negotiation.

Compare the property with similar ones in the area.

It is necessary to investigate the prices that oscillate the other properties that are within the same area in which the property is domiciled, and that have characteristics like this, this in order to reach the negotiation with knowledge on the subject and thus to obtain the right price for it.

In this case  is the best opportunity to invest offering reasonable prices to its clients.

Conduct a property inspection.

Inspections are of great importance when buying a property because it will let you know all those problems that the property presents, that is where you can support yourself to negotiate a reduction in the price, and thus, be able to pay for the repairs of the same.

Offer a consistent price.

A very common mistake when buying a property is to make an inappropriate offer on a property, which most of the time annoys and offends the seller, it is necessary that at the time of making a counter offer it is around the data that was thrown in the appraisal, to achieve good communication be.

Save money by buying a cheap apartment.

Decide which housing features are important to you and which you can do without, reducing the demands is a good start to acquiring a cheaper apartment. For example, if you work from home, transportation accessibility or location will not be decisive.

Make a table of your acceptable cons. In front of each one, write the approximate cost of the work that may be required to eliminate the deficiencies. For example, if it is an apartment that is close to the elevator, you should put a noise-insulating door, the first floor will need to put window grills, among others.

Consider whether waiting around the house is profitable. An apartment under construction at the beginning of sales is cheaper. Do not hesitate to ask about discounts, promotions, or cheaper apartments in the same area. Don’t limit yourself to just one option, compare prices with different designs and in different locations.

Do not forget about tax deductions, the most sensible thing is for the seller to help you cover the fees of the purchase-sale transaction.

An even cheaper apartment

As a rule, the cost is lowest per square meter at the excavation stage. So, prices gradually go up as construction progresses. Many developers offer fees, but they give a good discount for the cash payment.

Disputed objects near the residential complex tend to reduce the cost of real estate the most, for example, airports and busy highways create constant background noise, tram and railroad tracks cause vibrations in the apartment, landfills and industrial companies are sources of unpleasant odours.

Be patient and act consistently, remember that the seller wants to get the best out of his property and surely you will not be the only one who is interested in it.

Rental of housing

Now the home rental market is quite active, despite the general glut of supply over demand, high-quality options at the right price kick in quickly. Even objects with low consumer quality find their customers subject to price matching.

The market also supports the fact that large cities, such as Montevideo, retain their attractiveness as a place of work, study, and residence, leading to a constant influx of non-resident population.

It should be noted that hiring a department with the help of a professional intermediary agent is generally accepted international practice, and in developed markets there is no doubt about the relevance of such intermediary services.

At the same time, the situation on the rental market is far from ideal, and this is mainly due to the lack of detailed regulated contractual relationships between the parties.

What is the situation with the agents?

The main and fundamental point of the client relationship model with a real estate agent promoted in the market is that only the client pays for the service. That is, if the owner asks the agency for an application to rent the apartment that belongs to him, the owner pays the commission. And vice versa, if a potential employer applies to the agency, then they pay for the apartment selection service. This allows not only to create a clear work structure in the rental market, but also to increase customer loyalty towards our profession.

Also, if we consider the ideal situation, the owners in good faith who receive income from the rental of their houses should pay income tax, and if this activity becomes systematic for them, then it is better that they register as sole proprietorships.

Buy or rent?

At first glance, it is enough to build a mathematical model and calculate what is more profitable to buy or rent, but in practice, the choice between renting and buying an apartment always depends on the specific life and financial situation of the client.

The choice between renting and buying depends on the current life stage. Obviously, it is quite comfortable for a student or a “beginning professional” to live in a rental home, and financial opportunities at that age are generally limited.

Creating a family and having children seriously changes a person’s attitude towards life, and during this period, it is more preferable to acquire real estate as property. Currently, the main inclination is home buying as it gives a sense of confidence, security and eliminates the psychological discomfort of living in a rented place.

Home rental is even more common among the “creative generation”, who want to maintain maximum mobility and do not seek to be firmly linked to any place.

Independently or through a real estate agent?

What arguments to give the client?

When looking for an apartment for rent, it is worth considering, is it good for you to understand current market prices, the content of title documents, and employment law?

The real estate agent must communicate to the client that he understands that the process of renting an apartment is not limited to choosing options on the portal, seeing the apartments he likes, shaking the owner’s hand and handing him the keys.

It is necessary to ensure that the owner of the apartment or his appropriate representative contacts you, checks whether the documents on the ownership of the apartment comply with the legislation, do not harm the proposed contract to sign your interests, or contain unfavourable or potentially risky conditions.

A person who rents an apartment assumes all associated risks and responsibilities, including the risk of fraud, for example, if the owners do not receive copies of the documents and try to receive the first payment and the security deposit while the owner It is on vacation, business trip or out of the country.

It is important to convey that the current legislation is the guardian of the interests of the contractor and the owner, and one of the guarantees of the observance of their rights is a properly drafted contract, which guarantees the balance of the interests of the parties during the negotiations.

An additional way to protect yourself is to use the services of verified real estate agencies, for which the representation of the interests of the parties, the negotiation and the conclusion of contracts is a daily practice.