Here's a breakdown of the key elements and where a real estate professional should look for each one.
Analyze current market conditions and trends
A good starting point for understanding market behavior is to analyze the current balance between supply and demand in the market. Is it a buyer's market or a seller's market? How many assets are being put on the market, how many are being bought and sold?
number of new properties put on the market with a series of characteristics
Balance between supply and demand in the market, shown in a graph with increases and decreases in property prices on the market.
The answers to these questions can be easily found with CASAFARI's Market Analysis tool, a tool that analyzes big data to identify patterns and translate them into market trends.
CASAFARI Market Analysis: See the evolution of the real estate market in Spain
To understand why a market has certain levels of supply and demand, it is important to go back to basics and understand broader economic factors, such as interest rates, inflation, or employment rates, for example. Staying abreast of recent news that may affect local dynamics, such as changes in government policies, is a key part of developing a comprehensive real estate market study.
selling prices per square metre, so that real estate agents can see which prices are above average and which are below.
But if we get back to the numbers, you'll also want to take a look at the average price per square meter to establish a price benchmark and pay attention to the price segmentation of the assets. Luxury properties may behave differently than homes in working-class neighborhoods, for example. This can also be easily found with the Market Analysis tool.
It is also important to consider how long properties with the same features as yours have been on the market before being sold, as this can indicate demand and price elasticity.
How long do properties spend on the market, depending on their price segment?
Finally, you'll want to compare both the median sales price for each market and the median offer price. This comparison can help you understand the level of negotiation involved in buying or selling a property in a specific area, and whether you should plan a sale by anticipating price increases or decreases when negotiating with potential buyers.
Average closing prices by area of the city
Create a complete real estate market study with CASAFARI
Add a competitor analysis to your real estate market study
Digging into comparable properties allows you to accurately assess a property’s true market value. By analyzing the details of similar properties in your real estate market research, such as their location, size, condition, and recent sales prices, professionals can identify trends and nuances in the local market that can impact property values.
Find comparable properties and run a property valuation within CASAFARI, based on a property's location and features
To do so, all you need is CASAFARI’s Property Valuation tool. Use this tool to instantly review properties currently on the market that are similar in type, size, location, and price range to understand the competition. Or, if you need to see recent sales data from the registry, select only the “Closing Price Comparables.”
CASAFARI Property Valuation Report in Detail: What You Can Create
Be sure to specify the property type when you perform your valuation, so you can differentiate the specific dynamics of each segment.
It is also interesting to look at competitors and try to identify any unique features that may differentiate the asset in your portfolio from others in the area, such as a large lot, custom architecture, a high estimated rental yield, or others. This can be done by exploring the property pages for each asset.
Finally, you might even want to take a look at our Property Search tool to find withdrawn properties with the same features and location as yours to try and gain insight into why they didn't chinese overseas america database sell or any potential advantages your portfolio may have over them.
properties delisted within the CASAFARI Real Estate Search, useful information for real estate agents to see what has been selling similar to their portfolio
Create a complete real estate market study with CASAFARI
Take into account the specific factors of the property
As you well know, it's not just the market that influences how a property is perceived, right? It's also important to add some property-specific data to your real estate market study, to assess which of its features may affect the perception of potential buyers.
The first factor is, as you might have guessed, location, location, location. Go to the property you're looking at in our Property Search tool and open its page to view the Location Widget. With this feature, you'll be able to assess its proximity to amenities that potential buyers or renters would find interesting, as well as the overall desirability of the neighborhood.
Smart Location Map: A New Property Sourcing Update from CASAFARI
Location information showing amenities in the vicinity of a property and travel times using different modes of transport
Additionally, you should include on your to-do list talking to the owner and researching the condition of the property, its age, whether the building has an elevator, a parking space, and any other specific features.
Foresight to find opportunities
Analyzing data in a time series, as you can do with the Market Analysis tool, is also one of the useful resources for preparing a real estate market study. This will allow you to understand the behavior of trends and intuit what to expect in the near future.
Focus on information such as recent property sales, price movements and transaction volume to identify emerging neighborhoods.
