Sell real estate – how a market value analysis helps
Many reasons lead to the decision to sell a house or a property: you move for professional reasons, because you have found the dream job in a new city, the children are out of the house and you want to downsize, you have inherited a house, in you do not want to move in yourself. The home sales project is complex and time consuming. Alone to organize the move or the budget resolution takes a lot of time. In addition, there is the question of how to achieve the best price for the house. Therefore, it is worthwhile to analyze in advance exactly what you want and can do yourself and in which areas a professional support makes sense.
What are the stages of home sales?
Planning is essential for the successful implementation of a project. One should first be clear about the phases in which a home sale is handled. You can distinguish the following phases:
1. Planning and preparing for home sales
2. Analysis / positioning of the property
3. Interest qualification of potential buyers
4. Financing audit of potential buyers
5. Sale completion
For each of these phases there are real estate service providers offering professional support. In the analysis phase, for example, it is possible to fall back on appraisers who value the value of the house, ie perform a property analysis and market value analysis. In addition, professional photographers can take pictures of the house for online presentation and thus address a larger number of potential buyers.
How to determine the fair selling price of a property?
Years ago, you have invested a lot of money to buy your house or the condominium and now you are parting. Unfortunately, the simple invoice purchase price + investment costs = selling price often does not work out. The final sale price depends on many factors and is very much influenced by the first pricing. Many sellers therefore ask themselves what the correct price is and should be at the beginning. If the price is too high, you will not get any requests. If the price is too low you lose money.
Therefore, the question arises: what is the fair market value and derived from this the correct selling price? The original purchase price can serve as a rough guide to the selling price, but there are other points to consider.
A market value analysis considers factors such as quality of construction, general condition, building fabric or location:
Situation: outdoor area, village, urban area, residential area, mixed area, commercial / industrial area.
Property size and orientation
Living and usable area
Year of construction: Objects before 1950 are generally more difficult to sell than those built in 2000 and later. The latter cost an average of 100,000 euros more.
Type of property: villa, apartment, terraced house, semi-detached house
Floor plan: modern, normal, unusual
Construction: masonry, prefabricated house, reinforced concrete
Standard of equipment: simple, medium, upscale, luxury
Interior work (quality and scope) Developed roof, cellar
Heating and hot water supply: intact or in need of renovation
Sanitary facilities: surface and concealed fittings, several bathrooms
Exposure: brightness of the apartment
Outdoor facilities: terraces or balconies
Transport Situation: good, medium, unfavorable for driving to highway, train, shopping, school, public transport
In addition to these partly obvious and subjective criteria, there are also criteria that as a layman can usually not be correctly assessed. Therefore, it makes sense to have such a property value analysis by a professional real estate service provider or neutral appraiser to create. The experts comprehensively evaluate 50 criteria such as situation plan, marketability, room concept or control foot, all elements that have a decisive effect on the price.
To determine the fair market price, then the prices of houses are compared that have similar criteria in a similar spatial location. Using statistical methods, the market price can then be determined. The result of the market value analysis of the property is usually written together in a comprehensive expert dossier and presented on which criteria the selling price is based.
This dossier can be used in the negotiations and made available to prospective buyers. The price negotiations therefore start on the basis of a price, which was not calculated by an emotional decision of the seller, but by a neutral expert and refers to the prices of real sales transactions. Such a professional opinion may also provide the basis for agreement in litigation, such as a divorce or inheritance dispute.
A market value analysis can cost up to 3500 euros. Savings fox find on the Internet but also providers who offer this analysis for free.
Home sales privately or using a real estate service broker
After evaluating the property, the next question is whether to sell privately, through a broker or a professional service. In a private sale, you have to be active and manage the quite complex process itself. This includes switching ads, taking pictures, arranging appointments, conducting house visits. If you turn on a broker, then it is often a lottery game if you catch the broker who can also get the best deal for the sale. Some also operate only regionally and so the seller can avoid potential solvent prospective customers. Service providers in the real estate sector also offer an all-round service. Here you get all the things that concern the sale of a property decreased. Of course this is easy and saves a lot of work. On the other hand, you have to pay for this service, of course.
To make a decision, one should take the time and compare different offers. In addition, one should calculate the own opportunity costs that arise from the sale of a house: How much time do I use to take pictures, to guide visitors through the house, etc? How much does an hour cost me? Based on this, you can compare the costs of a broker’s own costs and decide what makes sense.
Whether privately or through brokers: who wants to sell a property should first determine exactly how much money he can actually ask for. Because who sticks to unrealistic ideas, risking a high loss – a good market value analysis helps.