When we analyze property prices at the market we usually compare them with other comparable properties, but prices are formed thanks to several main factors. One of the most significant are trends at the international market and interest rates, especially in the time of big economic upside downs, however in other smaller and frequent changes at the local market usually are involved some other factors:
- Current offer at the local real estate market – The bigger the offer of comparable properties at the local real estate markets it is the more probable to rent or buy your property for a lower price. Prices may jump in a case that demand of properties becomes higher than the available selling or renting capacities, but this is not so frequent situation in property business.
- Added value of specific property – Except the usual features that goes with every property, properties may have some extra features such as extra space inside and outside of the building, as well as some luxurious elements, swimming pool, sport area, sauna. Here, we count even the future prospects for chosen place and its surrounding. Big, as well as small investments and developments in the nearest surrounding can have big influence on a price, so we recommend both to buyers, as well as the sellers to pay special attention to this aspect.
- Preparation and presentation of the property – You can definitely expect to earn more if you make small investments in property that you sell or rent, as in this way all the short comings will stay hided. Small tricks such as painting, cleaning, changing some of the old work wood or a new gate in the yard will improve the first impression and the final price as well.
- Good location – Good location is one of the best trumps for every property. The price will be higher if property is somewhere near the city center, however you can ask for a good price even if connections are good or there are some of interesting contents, shopping malls or big green areas somewhere near.
- Additional investment – No matter how high is the price of the property you can ask even bigger price if there is enough space for new investments within the property. Everyone is prepared to pay bigger sum of money for something that will gain in price with next few years.