Are you thinking of purchasing your dream house? Before you consider making such a big move, you need to thoroughly do your research to land on the best deal among the many offers available. Importantly, you will need to do proper research on the following areas...
1. Rate per square metre
Determining the actual value of a property can be difficult, but it is essential to ensure you are not considering properties outside of your budget. Some of the factors you need to consider could be the number of bedrooms, how many bathrooms and the availability of parking spaces as they significantly affect the value of a house. Additionally, land size and floor space of the property needs to be considered first as they are a critical factor in determining the value of the property.
Therefore, you can look for records for the sold properties over the past seven months and calculate the square metre rate of the properties. Significantly, check on the state of the home and its design, any recent renovations, natural lighting, views and the presence of street lighting which also contribute to determining the value of the property.
2. Number of days on market
The number of days the property is on the market is an indicator that shows how long it takes to sell a property through a private agreement, from listing to selling the property. Different properties differ in the number of days it takes to sell depending on the value of the property, demand and supply for the property in the market.
Generally, properties which spend more days on the market indicate an oversupply in the market. Potential buyers in such scenarios are presented with many alternatives hence enjoy a higher bargaining power over the seller. However, when the number of days on the market is lower, then the demand for the property is higher compared to supply, giving the seller greater bargaining power over the buyer during negations.
3. Auction clearance rates
Auction clearance rates express the percentage of properties sold at or earlier to auction, but trade on the same day. It shows whether the sellers' expectations are met and the direction to which the prices will move.
As a universal rule, a low clearance rate shows a weakening conviction and is often symbolic with falling prices. On the flip side, a higher clearance rate is indicative of a more vibrant sentiment and satisfactory conditions for sellers. Generally, an auction market is a platform that provides a large enough sample to benchmark market confidence. These rates are useful in deciding whether to make a purchase or not.