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Learn how mortgage rates, average sales prices, and real estate registrations can help you get a good deal.
Selling property is a potentially challenging task. There is so much information that it is necessary to have attention and planning to stand firm. And you can use easily accessible data to clarify your path to solid pricing and faster sales.
Throughout this post, you learn more about:
How to analyze the real estate market to understand its moment
How to compare apartments and prices in the region
How Loft’s Pricing Algorithm Can Help
How can real estate market performance help in negotiation?
The demand for real estate and the payment terms offered by buyers are directly impacted by the national economic situation. And there are so many nuances that this does not necessarily mean that when there is an economic crisis in the country as a whole, the real estate market also goes bad. Just the opposite can happen.
In 2020, for example, there were records in real estate sales in several cities, records in real estate financing and records in municipal building permits in São Paulo. Even in the midst of the pandemic, the real estate market has shown itself to be strong in its recovery since the last crisis, which started in 2015.
Also read: Why has the housing market responded so well to the pandemic?
A big ingredient of this boom is the historically low interest rates on mortgages, making this an attractive time to close deals for those who already had plans to buy a property before the arrival of the coronavirus. In 2020, more than R$124 billion were financed (an increase of 58% compared to 2019) and 426.8 thousand units were sold.
In addition, since last May, there has been the possibility of portability of financing, fostering competitiveness among banks that is here to stay.
That said, what is good data to track?
Numbers such as average home sales price, mortgage interest rate and mortgage volume will help you understand if the market is “hot” or “cold”.
If it’s hot, negotiations are more in favor of the seller because there are more buyers in the market. If it’s cold, it’s a good idea to calculate new profit margins and be more flexible to hook a good buyer when he comes along.
One way to follow this theme is to seek news about the real estate market in the main press vehicles in the first days of each month.
Information on the market’s performance in the previous month – which comes from organizations such as FipeZap, the Housing Union and the Central Bank itself – will have already become articles and will often come with analyses.
For those who want more in-depth analysis, it is worth researching in vehicles more linked to the financial market.
To learn more: Real estate market expectations for 2021
How to compare similar apartments in the region
It is known that pricing your property on your own, without taking into account the reality of the buying and selling market around you, usually results in prices much higher than the real price.
It is this difference that ends up showing itself between the advertised price and the final sale price. Loft data show that, in São Paulo, this average difference is 17%, but it can be much higher depending on the neighborhood. And the process of getting there, after starting at too high a price, can be quite exhausting.
Understand real price as one that is aligned with the supply and demand of that region at that moment. It’s what will be in the minds of buyers, who research several similar properties in similar regions.
In practice, if a buyer is looking at several one-bedroom apartments for around R$500,000 in Perdizes, an apartment of this type that costs much more than that will stand out as something out of the ordinary – and probably won’t be considered, right?
Do your own research
The main tip of experts is to compare prices in the region. Invest in your own research by asking around the neighborhood for the advertised price of properties for sale similar to yours (in terms of size, floor plan, location, etc.).
To get organized, consider making a spreadsheet of this information. This way you will have an important pricing base and you can go from there to add value to improvements and differentials (who knows if there is a suite or a kitchen integrated into the living room) and create more competitive prices (if your property needs repairs, for example).
How to study the purchase and sales history of your unit or similar
The property registration works as a kind of real estate CPF: all the information, since its construction, is there. This includes plant description and sales history, with dates, prices and other relevant data.