Factors That Determine the Salability of a Property
For any broker to succeed and thrive in the real estate industry, it is important for them to be able to distinguish between the salable and absolute factors of a property. These factors will also highly depend on the needs of the buyer at the time they are purchasing a property.
Babra Adhiambo
As a real estate investor, you should be able to determine these factors. They include the following;
a) Legal Documents
This is key, verify documents that are relevant to the title of the property, mortgage and appraisal before you get to put the property out for sale. Be ready and equipped to answer queries from the buyers, you should prepare a draft contract in advance.
b) Location of the Property.
These are geographical conditions surrounding your property. Therefore those properties located in areas around the water bodies, houses near good schools may have a good premium as compared to other properties. While it is impossible to change the location of your property, find how it will best serve the needs of your target market. The properties' location will dictate the activities, climate and landscape.
c) Grades and Updates
Major on the following areas such as; the yard, the kitchen and entryways. Upgrade the kitchen with new cabinets and modern stainless steel appliances to lure in buyers. Put on proper light bulbs to add to the general elegance and brightness of the house. Also, be keen when designing the exterior of the property since it is the face of the house and it also prepares the buyer of what to expect inside.
For entry and pathways, choose brighter colour palettes that match the entire design of the house. Consider simple ceiling designs.
d) Economic Indicators
The housing demands will highly depend on income. When there is higher economic growth and income, the demand for housing will be high, this will also increase the demand for houses and push the prices up. In recession periods such as tough Covid times some people might lose their jobs, people may experience tough economic times leading to the hard source of livelihood since other people will be unable to purchase houses. Others may delay paying their mortgages and fear losing their properties.
e) Interest Rates
This highly affects the cost of the monthly mortgage payments. High-interest rates increase the cost of paying a mortgage making the demand for buying a house go down while relatively increasing the renting rates.
f) The Size of the Property
The size of the property is an important factor because this will guide you in calculating the salable area value of your property.
