Ever wonder how to analyze the current real estate market? And what is the best way to get the most accurate information and research from the real estate market? Then this article is for you. This article is meant to help you get property news that is needed to better understand the current real estate market and to get a better understanding of the current real estate market.
Research neighborhood quality and amenities
We are able to use county assessor websites and Street View by Google Maps as a tool to research and narrow down potential property purchases without ever leaving our offices. With this information, we can better understand if the house backs on to a garbage dump or major highway and deem it fitting for our expectations. By deleting properties from our list that don’t fit our needs, we can move onto the next one with ease.
Some other areas are not as fortunate as others – in terms of access to clean water, sanitation systems, and electricity. For example, hundreds of millions of people use fuels like wood or dried animal dung for cooking their food, exposing themselves to smoke inhalation and the risk of life-threatening conditions for respiratory diseases. Clean water – and even electricity can be a problem for those with no access to it. And close to 1 billion people lack access to toilets.
Obtain property value estimates for the area
As a buyer, your real estate agent will help you determine a ballpark property valuation. Local real estate agents are one of many sources you can utilize when trying to establish a property’s estimated worth. It’s important for your agent to break down the value and present it in an organized fashion for better understanding before inspecting the property site-visit.
Keep in mind that these prices are estimates only. It’s likely that the value of a property will differ from one place to another, depending on its unique features or surrounding environment for example.
Select comparables for your real estate market analysis
To write an effective business plan, begin your initial real estate market analysis by selecting 6 comparable properties. Out of those six, three should be homes in the neighborhood that have sold within the last few months. Then choose 3 more homes currently on the market to include in your assessment.
Calculate average price of comparable listings
Creating a spreadsheet for all properties is the next logical thing to do. These days, there are a lot of different ways a business owner can run his or her company, but regardless of how you decide to structure your time and resources, it’s important not to let the little details slip through the cracks. Creating an exhaustive list doesn’t have to be complicated – but it will help relieve a lot of stress and make sure that everything runs smoothly!
Fine-tune your market analysis with adjustments to your comparables
Every real estate property is unique and different, but the most effective way to ensure you’re looking at properties of the same value is by adjusting your list of comparables. Adjustments can be anything that adds or subtracts value from a piece of property. And to make sure your adjustments are accurate, make all necessary notes in a special property journal that you keep handy!
Using the spreadsheet format will help you see a pattern when it comes to the specific features and amenities of each house. This is important because it can affect the sales or listing price, and for what price per square foot of real estate. When you’re finished making adjustments, recalculate the price per square foot so that you can have an accurate idea of what’s fair market value for your subject property.
Most real estate investors agree that having a strong long-term strategy, combined with patience and a degree of luck, is the key to success in real estate. This is not a get rich quick scheme, but one that requires a significant time commitment to be successful.