Want to know how to calculate the sale price of a property? The profit margin is the fundamental reason why the real estate agent decides to negotiate a property. But how do calculate the sale price to hook the buyer and in turn generate a significant profit?
To calculate the sale price of a property, the real estate agent must do a thorough investigation and implement a method that considers as many factors as possible to arrive at the most balanced figure.
The more factors are included in the equation, the more likely it is to reach a competitive price in the market, which generates interest, attracts quality buyers, and adds dividends to the business account at the end of the day.
How to Calculate the Sale Price of a Property
The price of the property depends not only on its conditions, for example, its structure or its age, but also on the market in which it is circumscribed. That is why the importance of preliminary investigation must be undertaken.
There are several universally used methods of how calculating the sale price of a property. Such as the one based on the data from the official cadastres or the “repeat sales” applied to older properties.
At present, technology, and especially the development of artificial intelligence applied to the real estate business, has had a positive influence on how to calculate the sale price of properties and make it more accurate.
There is also the option of hiring the services of a professional appraiser. The appraisers charge a percentage based on the final value they place on the property.
There are cases where the signature of an appraiser is mandatory, for example, when the sale of the property is negotiated with a legal entity.
What is the most appropriate method then? A good management platform and a robust database can make the task efficient.
Example of How to Calculate The Price of a Property
In principle, to define how to calculate the sale price, it is necessary to list the greatest number of characteristics of the property to offer according to:
- Age of antiquity.
- Area in square meters, both interior, and exterior.
- Property type.
- General characteristics (number of rooms, bathrooms).
- Special features (terrace, pool, sports court, gym, parking space, etc.).
And yes, it is an arduous job that requires tools that are simple to use, but at the same time are powerful enough to cross these data with those of similar properties to be able to calculate the price.
The more reliable data the real estate agent has on hand, the more accurate and fair the price will be that the calculation yields.
Surfing the internet you can get free digital calculators that make the task easier. Disadvantage? They do not give the opportunity to those who consult, to know for sure the reliability of the data with which the comparisons are made.
But a professional real estate agent tries to have tools, also professionals, to improve workflows and make the services they offer more efficient.
Compare With Other Real Estate and Properties
The most efficient way to arrive at the competitive price that the real estate agent needs for the property that he negotiates and that generates profits, is based on the price proposed by other realtors for similar properties.
Having a direct communication channel with partner real estate companies and being able to interact with them from the same platform are advantages that will make any real estate business reach the next level.
How to calculate the sale price of a property is one of the most common questions in the real estate business.
The prize awarded to the property should be good enough to attract quality buyers, but at the same time bring significant benefits to the real estate agent who negotiates it.
To calculate the price of a property efficiently, it is necessary to collect as much data as possible about the property and also have at hand the information of other properties with similar characteristics.
Based on the prices of those other properties with similar characteristics, the price of the new property can be established.