Real estate market analysis and why it is necessary

If you are involved in real estate market, real estate analysis remains a key ingredient you have to consider. Real estate market analysis is a tool that real estate agents and players use to determine value of specific property on market, it could be land or any other property.

The buying and selling of land or any other property is based on a notion that it’s priced fairly and this can be best done through real estate market analysis because it helps you study the current market value of property in comparison with yours thus making you make an informed decision not to sell your property far less value but also not abnormally priced as it may fail to attract market. It helps you understand the real estate cycle and whether it’s best time to sell or hold on.  

Conducting a market analysis may not be easy and at times requires some level of professionalism that is why we felt it necessary to highlight key factors that can help in your real estate journey.

ALSO READ

• Land acquisition: Why a client needs to be supported to understand what happens at each stage
• What will shape the future of real estate industry in western Uganda in 2023
• Don’t keep your land idle, invest in tree planting

As a real estate market dealer you need to have the necessary information and data on properties or land markets in your area as compared to those already being listed for sell or have been recently sold.

The first step in market analysis in real estate market analysis is to do research about the neighbourhood of where your property stands look at the characteristics or features surrounding your property and this can include location and neighbourhood, the availability of amenities like water, health services, schools and infrastructure like road network and markets, and recent developments.

After identifying the characteristics then you go into comparing other properties in that area for example compare similar properties that have been sold recently in that area and compare it with yours. Note that when you are making this comparison make sure that the property or land you are comparing with has the same characteristics as yours like location, size and other features.

But also look at land or property that has been listed for sale around the area where your land property you intend to sell is. Don’t just look at one property or piece of land get at least three to five properties.

However, at times need you need to be careful also because some of the prices of the listed land or property for sell may not necessarily be real values because the prices set may be prospective, many sellers at times tend to set higher prices than the actual value.

CLICK HERE TO FOLLOW US ON FACEBOOK

Also look at should also consider pending property listings these are recently finalized deals which have not been fully closed yet. In your real estate market analysis, analysing pending listings will give you a good idea about how the real estate market is doing at this very moment. Also look at expired property listings, these will be of indispensable help in your comparable market analysis. Usually the reason for listings to expire is that the price was too high. If there are property listings comparable to yours that have expired, you should probably not ask for a price as high as theirs.

Whereas you can do market analysis yourself using a real estate professional or agent can be of a much help because for them they have experience and training in this industry