When Will My Property Be Sold/Rented? Is there an exact answer to this most delicate of questions? Elizabeth Kariuki of RE/MAX Taji discusses some variables that influence property transactions.
Every property owner selling or leasing their property would really love to nail down this question especially when they are working in tandem with a real estate consultant. However, all professional real estate consultants know that to answer a question like this would mean understanding and identifying uncontrollable variables in an evolving market place.
To begin to answer a question like this it is imperative to know some of the key variables that determine real estate business transactions. Some of these are;
1) Physical Condition Of The Property
Everybody wants value for their hard earned money. This means that nobody wants to buy or lease property in less-than-ideal condition. When property owners decide to place their property in the market, they need to ensure that its unique advantages as property are clearly and advantageously evident.
2) Pricing Of The Property
The property must be priced competitively so that it attracts the right buyers or tenants. This factor determines why some properties stagnate while others literally fly off the shelf.
3) State Of The Economy
In a sellers’ market, there are many buyers competing for few properties available while in a buyers’ market there is a glut of properties in a marketplace of fewer able buyers. Market conditions tend to evolve over time from one state to the other.
4) Political Climate Of The Country
Erratic and unpredictable political climates render properties almost worthless because it makes them unviable. However, stable economies greatly increase the value and appeal of any property within its boundaries.
5) Geographical Climate And Location Of The Property
Tolerable geographical climate makes a property appealing. Harsh geographical conditions make a property lose its value.
6) Topology Of The Property (Shape And Size)
The useable areas of any property greatly determine its scalability and also it’s pricing. The more useable areas a property has the higher it shall fetch in the market place.
7) Neighbours To The Property
This should never be taken for granted because neighbours determine the working or living conditions of particular areas and it is from this that neighbourhood reputations are built or destroyed.
8) Access and To The Property
Easily accessible properties are conveniently located and therefore more desirable for residences and working places. They are also easier to keep securely protected than properties that have accessibility challenges.
9) Amenities That Come With The Property
“Location, location, location”, is a common saying in property circles. Desirable amenities include easy access to good hospitals, schools, shopping malls and commuting to and from work, among many others.
10) Income Potential Of The Property
Any property can be converted into an income generating asset as long as it is in favourable condition with all the above variables.
These are only some of the more obvious variables that play a crucial role in determining the length of time a property remains in the market. There are other more hidden and seemingly imperceptible variables that come into play as well. All in all with patience and continuous exposure, all properties eventually find the right buyers and/or tenants.