While earlier in the years of stagnation, a supply market was formed, buyers could choose between the properties for sale, last year the housing sector revived, and buyers pushed up the prices of properties located in good locations and in good condition. In the current demand market, it often happens that the seller increases the negotiated purchase price even more after a few days, because there are people who will pay it. The situation of buyers with the purpose of creating a home is not easy, because investors simply promise the offer prices.
In addition, the Government wants to stimulate the housing market in order to put the construction industry and developers in a position, and at the same time push the cart of the Hungarian economy. Hundreds of billions of forints can come to the market together with investors who get rid of government securities, but voluntary pension fund members can also spend their money on housing, and even foreigners who have obtained a visa can also buy real estate, but there are other possibilities as well.
The art of pricing
Due to the recent developments, the repricing of real estate for sale already started last year, many people were already calculating with the funds coming this year. We are anxiously waiting to see if the offer price, which was already raised last year, will continue to rise. Obviously, supply and demand dominates, that is, if the demand pays these orders of magnitude, then the prices rise. But it is also possible that only the types of apartments preferred by investors will sell, i.e. renovated studios and apartments with a living room plus one or two rooms in good condition in excellent locations.
Why is it important to take market conditions into account before creating and setting up our ad? Therefore, the most important thing is to advertise the given property at a realistic price without any emotion, keeping past family memories at bay. The latter is very difficult to define these days due to the turbulent market movements outlined above.
When determining the correct market price, we have to take many aspects into account, including the specific location, since the simple basic rule of the real estate market is that everything is determined by the location. What in war is money, money, money, in the real estate market is location, location, location.
Environmental factors
In other words, we have to take into account the pricing and market situation of the immediate residential environment, but it is also a consideration whether a significant private or public investment can be expected in the given district, settlement, or district that will increase the value of our environment. This can be infrastructure development, it can be an additional convenience service, such as a retail unit, but it can also be development that meets social needs, such as a kindergarten, school, playground, etc.
But the wider environment also determines prices. Here we can talk about different social dynamics, so for example, huge differences can arise between slumd or gentrified residential areas, even though they have similar parameters. For example, the Corvin district has undergone a fundamental transformation in recent decades, which is also reflected in the price of newly built apartments. In the same way, the new residential buildings of Angyalföld are much more expensive than the properties of the neighboring, smaller housing estates built in the past.
Passing traffic is also a determining factor, since we can talk about a quiet side street or the neighborhood of high-traffic roads, but we can also talk about outer district garden cities or densely built-up downtown districts. The vast majority of properties have their own target group, you just have to find them with the right pricing. Young people or young couples making their first home purchase are happy to buy in the bustling city center, as are investors who want to rent out the property for either a short or long term. While those planning a family or middle-aged people with children prefer to move to a quieter area, if they prefer the tranquility of the garden cities or the advantages of the agglomeration.
What is the condition of the house?
In addition to the location, of course, two basic factors also come into consideration. On the one hand, the condition of the house, whether it is a family house or an apartment building. The condition of the building is decisive because, in addition to the rational decision of how much money they can buy what they can buy, taking into account their own needs, they get a sense of life. In other words, it is important that they fall in love with the neighborhood, the house, its atmosphere, they can imagine that they can feel at home in that building.
And if we think at the level of condominiums and apartment buildings, then again we can talk about a complex issue, since the condition of the buildings is related to the composition of the residential community. If we are talking about residents who live in relatively good financial conditions and/or maintain a cohesive and fair relationship, then they can set aside more for renovation and modernize the building sooner. For example, replacing the boiler and insulating the pipelines in a residential building with central heating costs several tens of millions of forints, and if this is not done, a lot of energy is wasted, while the residents can face horror prices in the monthly breakdown. Not to mention the fact that while the pensioner almost freezes on the ground floor or the first floor, others “fry” on the fourth.
An important aspect of the building is the location of the apartment within the building. What floor is the chosen home on, if it is high, is there an elevator, or if so, has it been renovated or is it still operated with a key, as in prehistoric times. Where is the apartment located in the condominium, next to the elevator, by the stairwell or in a quiet corner further away? Where do the windows face?
It is a defining moment that when the prospective buyer steps out into the hallway or stairwell, looks around the garden or yard, sees the front doors and windows of the apartments, and meets the neighbors, he can really identify with the overall picture that unfolds based on the details. It all belongs to the complexity of the previously mentioned feeling of life, that is, rationality is mixed with the emotional coefficient.
What’s in there?
The other important aspect is the interior, as we are only now reaching the apartment door! While we’re here, let’s enter the apartment! A fundamental aspect is the feeling of homeliness, the charm of the atmosphere, which is a defining moment even in a personal meeting. The first few seconds can already be stimulating, but then, of course, these feelings can change if we take a thorough tour of the property. This is where the art of home staging comes into play! In fact, we can even come several times, especially if it is not an apartment that will be bought in five minutes, because they can be considered a hit product, such as the already mentioned renovated studios.
There are many physical properties that can be taken into account. Many of these are immutable, but many can be modified. Of course, the square meter and floor are given. The distribution of the rooms is no longer set in stone, although the main walls are obviously a barrier to the imagination, and the chimneys and chimneys cannot be thrown here and there either. But we can easily make a living room with an American kitchen, if the distribution of the main walls allows it. Moreover, we can even cut a new window, if the building’s characteristics are such and the neighbors are also partners in this.
Due to the current energy crisis, the heating system is decisive. Until now, it was a fundamental aspect, but now energy efficiency labels are also taken into account. Obviously, the newly built ones have everything together with the heat pump or the ceiling heating, with the older ones, the circo one was the hit compared to a convector. Although in the latter case, a circular solution can be easily created with the Mika boiler, while no additional chimney is needed, since the parapet is enough. Moreover, energy-saving electric heaters are also competitive in the case of apartments with lower ceiling height and modern doors and windows. And we could list more…
Don’t get lost in the sea of information!
Of course, the aspects outlined above do not cover all the possibilities, since we have not yet discussed the use of materials and their quality, the professionalism of the execution, the common cost, etc., but these roughly determine the realistic prices. If our property is cool, i.e. there is a lot of demand, it is considered a hit by both investors and buyers, then it is easier to sell. If several aspects arise, the turnaround time may be longer, and the price must be determined more carefully.
When do the real estate agents come?
In addition, there is also the time factor, which means that we do not – always – know exactly how prices have developed in the given location in recent years, what has moved the market, and who is looking for the given type of apartment, as well as exactly what parameters are popular. In such cases, real estate agents come to the fore, and their role is increasing in the sophisticated market, as more and more aspects are taken into account by buyers, who also have different purchasing goals.
Overall, when determining the correct price, the professional real estate brokerage profession performs a comparative analysis, that is, based on the aspects outlined above, it places the home in its own market. A critical point here is to have a sufficient number of cases: if we are talking about a dozen products, then our situation is easier, but if we are talking about a unique apartment, house, or even a neighborhood, then the role of consultants can increase, since the pricing is also more specialized.
Let’s continue…
Source: www.economx.hu
