How Do Realtors Determine Property Prices?

Determining the ideal selling price for real estate takes a lot of finesse. Accurate pricing can be made by considering many criteria such as the condition of a house, building age, features, location and region. The province, district and neighbourhood where the immovable is located are other factors that should be considered to make a general price valuation. For this reason, real estate consultants do a great job determining the real estate price. Many factors such as environmental and regional analyses and current inflation rates affect the property value, so more than one method can be used together to determine the house price.

Housing Price Calculation from Rental Price

No single and valid formula is used to find a real estate’s value. However, digital real estate agent software calculation tools successfully determine the ideal price range for real estate. For this reason, consultants can benefit from real estate programs with compelling calculator features. And also, One of the most preferred methods for calculating in the real estate sector is to consider the rental price of the house. Although the result according to the rental price calculation is not 100% correct, it is effective in finding an ideal rate. For this reason, many consultants prefer to calculate the rental price of the house before applying the tools of real estate programs.

In this calculation, There is a principle that the rental price determined for the immovable should coincide with the sales price in 17 years. According to this, The 17-year rental price corresponds to the real estate value. For example, A house with a monthly rental price of 2,500 TL calculates its own price in 17 years (17×12 = 204 months). In this case, the rent for 204 months is calculated as 2.500×17 = 510.000 TL and corresponds to the housing price. Although this calculation helps determine an average price range, it is not successful in giving precise results since it ignores many criteria such as annual inflation increase and regional development process because the time for each house to meet its price over the rent varies depending on different criteria such as province, district, neighbourhood.

How is the Housing Price Calculated?

The correct determination of the house’s sale price is of great importance for real estate consultants. To enrich the existing client portfolio and be recognized as a trusted advisor in the market, you must have expertise in home valuation. At this stage, you can determine an ideal price by calculating the rental price or get a more accurate price using the tools of new generation real estate programs. Fizbot, which monitors the market for you and analyzes price changes with its detailed comparison tables and tracking tools, is software that you can benefit from in calculating the cost of housing. Fizbot, which analyzes similar advertisements by considering the region, neighbourhood and residence characteristics, helps you to calculate the fastest prices for customers with its advanced real estate CRM platform.

You can reach the most accurate result in the shortest time with Fizbot, which allows you to determine the net price by comparing the houses in similar locations. Many factors such as the age of the building, apartment features, number of rooms, square meters, facade features, view, transportation facilities and apartment floor affect the housing price. Besides these, The buyer group in the region, the socio-economic picture and the projects planned for the future are the factors that accelerate the rate of the price increase. Using all these data together and following up on an extensive database allows you to specialize in developments in your region and determine the most advantageous housing prices for your customers. In addition, identifying investments with high potential and targeting the highest profit becomes the primary services added to your job description.

If you want to determine real estate prices faster by getting acquainted with the digital technologies offered by Fizbot real estate software, you can contact us here!

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