So , what are the key steps to help ensure that you are paying a fair and appropriate price for a property .
1 . Understand the Local Market
Before diving into property transactions , it is vital to gain a solid understanding of the local real estate market . Local markets can vary widely , and prices can fluctuate based on factors such as location , demand , and the overall economic environment . Researching the area where you are looking to buy is one of the first steps in determining whether the asking price is fair .
Key Steps :
Review Comparable Properties : Look at recent sales of similar properties in the same neighborhood . These are often referred to as comparable . Pay attention to properties with similar square footage , condition , and features .
Check Market Trends : Use online real estate platforms to track price trends in the area . Are prices going up , down , or staying stable ? This can give you an indication of whether the price you are looking at is in line with current market conditions .
It is crucial that you try to do apple to apple comparisons as much as is reasonably possible , and that you focus on actual comparable sales and not listings . Listing prices are only a guide and not an indication of the true market value of a property .
2 . Hire a Professional Appraiser
A property appraisal is an impartial third-party opinion of a property ’ s value . A professional appraiser will consider factors such as the location , condition , and recent comparable sales in the area . This can be especially useful if you are uncertain about whether the asking price is too high .
Appraisers are particularly useful in the commercial property sphere as they can use multiple appraisal techniques to determine the market value of the property .
48 REI MAGAZINE FEBRUARY 2025