When investing in residential property, you need to compare the one you are going to buy in order to eliminate the questions stuck in your head.
You have found the property you want to buy after a long period of research. However, questions such as, ‘Is it too expensive?’ and ‘Was the other property more suitable?’ are the first questions which get stuck in almost everyone’s mind after finding it. Making comparisons only on the price and m² will be wrong and insufficient. Instead, you need to set aside more time, list all of the characteristics and compare it with its equivalents.
The information required on the property in order for the comparison process to be correct
The details below are a little more simplified version of the details used by real estate valuation experts when comparing homes.
1-Position and location
The property which is intended to be bought and the one it is to be compared with need to be in the same neighborhood, or within very close proximity of each other. Even if all other characteristics are the same, a completely correct result will not be obtained by comparing properties which are not in close proximity to each other. The reason is the price differences between different regions.
2-The square meter size of the property
Properties which are close to each other in terms of their square meter (m²) sizes should be compared based on their unit square meter prices. Even if they are close to each other in terms of their location, it will be wrong to compare properties which are of very different sizes. The reason for this is that, in most cases, the bigger the property, the lower its unit price per square meter.
3-Being a new build
If the property which is being intended to be bought is a new build, the one which is to be compared with it also needs to be new. Even if they possess the same characteristics, there is a difference of around 15-25% between the prices of new properties and older ones. The result of such a comparison will be incorrect and misleading, due to this difference.
4-The direction and aspect of the property
If the property is looking towards the street or a private area, is facing the south, or receiving sunlight, its value will be between 5-10% higher than other apartments within the same block.
5-The presence of an elevator and car parking
In particular, in metropolitan municipalities, it is clear that there will be a difference between the values of properties with car parks and those without. As the presence of an elevator will cause the elderly and the ill to choose those homes in particular, it is also a factor which increases the value.
6-The common areas of the building
Swimming pools, sports centers, children’s playgrounds and a private garden belonging to the apartment are at the top of the list of the factors which increase the value of a home. Therefore, it is necessary to take care to ensure that the property which is to be compared with the one which is to be bought, also has the same characteristics.
7-The luxury fittings inside the home
If there are any fixtures and fittings which have been especially built for the property not present in a majority of homes, the value of these should be calculated and deducted from the price of the property to be purchased. The most correct comparison will be one that is carried out following this procedure.