26 Aug The Importance of Real Estate Analysis
Most times, real estate owners like to know the current price of their properties before they sell the properties to prospective buyers. Similarly, those who are planning to buy land or properties would like to know if the price is right and if they are getting what they are paying for. Real estate analysis is important and useful for both the seller and the buyer and it will serve as a guide to the investors and real estate agents.
Real estate analysis is prepared by real estate agents in order to provide correct information regarding the current price of land or property. This property, including its improvements such as buildings and fences is assessed or appraised to determine its market value and how much it should be advertised or how much it is more likely to sell. For buyers, on the other hand, it is an assurance that the property they are buying is worth the amount they are paying.
Real estate analysis is applied by taking into consideration the location or site, the size, which includes the land area and the floor area, the community or the locality where the land or real estate property is situated, building structure or its architectural designs, trees, minerals, and other immovable assets found within the land premises.
This process is needed in buying or purchasing commercial and income properties – and preferably before selling. It is needed in order to evaluate the sale price of land or property and to appraise a building’s worth. It helps provide the seller with calculations on different ratios, indicators as well as reports concerning residential real estate value. It explains, describes, and predicts supply and demand in the real estate industry. It includes the internal rate of return on the down payment after capitalization; also including the net present value, and other facts and figures about the properties.
If you are selling your property, it is preferable to have an appraisal from the real estate agent because real estate values change depending on the current market. The prices can move upward or downward according to the condition of the economy. An analysis can provide a portrait of your investment if you are buying land or properties because while some properties may have had low value once, in due time, this market value can increase once considering other real estate factors.