subject: Price Your Property Based Upon Active Properties Value [print this page] Private Money Lenders Arizona can help you in determining the right price for your property
For real estate investment business outcome at the right time is very crucial. And selling of properties in a quick manner is the outcome of real estate investment business. Of course every real estate investor wants to sell his properties in a faster manner in order to earn more wealth and eventually makes himself successful in his business. And those factors which are affecting the selling of properties are very important for real estate investors. I want to make an evaluation of the factors which may be leading your potential clients towards NOT TO BUY your property and will specifically concentrate on the factor of price.
First factor I chose for evaluation is the price of the property. And here I found that usually real estate investors make a huge mistake while determining the price of the property(s). In their market analysis they purely concentrate on what has been sold in that market and determining the prices of their properties on this basis. They surveyed for the sold properties in that area and then determined their own prices as they concluded that their property worth this much price. At this point I strongly need to mention that as a real estate investor your very first step is in a wrong direction while you set the price for your property. Always concentrate on ACTIVE properties rather than sold ones. Because in an appreciating or depreciating market the prices of your properties need to be set on the basis of active properties analysis for faster selling.
So first thing you need to focus is to analyze the competitor properties in the concerning areas of your properties. Also you need to consider it that we evaluated the existing scenario of private money loans arizona for your valuable properties. In a downward market it is more important to be competitive with actives than sold ones because sold properties could show you a property sold for but may not have any bearing on what they are going to sell for because the sales price in the future is going to be less than it is in the past.
If you are looking in the past, you are only going to see what is sold but not necessarily what is for sale. So active homes are competition for your properties is the conclusion.Sold homes are used as a guide to see the past prices are or it may give you a range of pricing or the high price depending upon your local market.As I talked to real estate investors and say Hey what is happening in your market place and we discovered it is a depreciating market place.So we looked at all the active and sold properties that were around there and confirmed that sold properties were higher in price than active properties.Usually real estate investors had been pricing properties based upon the sold properties and not upon the actives.
For example if a property has sold for $150,000 but there is a home across the street which is in same general condition is active for $130,000.Is a guy going to buy $150,000 house and the answer is NO.If he can buy one for $20,000 less why should he be interested in what a property is sold for in the past?He is going to be interested in whats active on the market.So from a buyers stand point, we actually adjusted the prices of two of his three properties.One we thought he is right and the other two we thought need an adjustment on.How often you should be reviewing pricing on your property was Freds next question and my answer was every two weeks.
The price of the property is something you cannot control. The only thing you can do is to inflate the price or do the fix ups and do everything you have already done to the property but if you have done everything to the property the determining factor of that price is going to be what a buyer is willing to pay for it. And we at Private Money Lenders Arizona do this with our esteemed real estate investors in order to help them determine their desired private money loans and prices of the properties. Happy Investing!
The article deeply analyzes the market scenarios in relation with prices of the property(s). The value of the prices can be determined only on the basis of existing active properties prices.
