How Real Estate Prices Form – See the Factors That Influence Price!

It is natural that when starting to sell your real estate, a seller wants to get the highest possible price for it. However, only properties with realistic market prices reach a deal, and therefore it is worthwhile to thoroughly research the market before putting your property up for sale and, if possible, also consult with a real estate agent.

When a seller starts to set the price for their property themselves, they usually rely on two sources – information obtained from acquaintances about what prices transactions have been made at in the area, and the offers shown on real estate portals in the same area.

However, neither of these may provide an accurate picture. Rumors tend to be exaggerated, and in reality, the property sold at a higher price may have had a higher actual market value for certain reasons. Portal listings also don't help determine a fair market price, since often the details of the listing are not examined in depth or photos are not studied, but simply the asked price is relied upon. Secondly, a property listing with a high price may have been up for sale for a very long time, and it is precisely the price that has prevented the transaction from being completed.

When setting the price themselves, sellers also tend to raise it based on emotional value. A price that is too high is justified, for example, by the fact that the farmstead or residential building has been in the family for several generations. However, to the buyer, the memories and emotions of strangers are not worth paying a higher price for. The seller also values the time and work spent on renovating their home and carefully selected interior finishing materials. However, the buyer's taste may be quite different.

The formation of a price is also often influenced by how quickly you want to reach a sales transaction. If there is no hurry, the selling price tends to be set too high, with the justification "but let's try!". If you want a quick sale for real estate, also read this article >>

If you wish to find a buyer for your property within a reasonable time, it is worth consulting with a real estate agent who will help you establish a realistic market price. An agent consults with property appraisers and other agents, and also has information about transaction prices of objects sold in the area.

The price is mainly influenced by the following factors:

• location
• size and layout
• condition
• floor in an apartment building and the presence of an elevator
• the presence of built-in furniture (kitchen furniture, wardrobe, bathroom fixtures)

Article source: Arco Vara Real Estate Bureau