If you belong to the real estate world, then at some point, you will have to perform Investment Property Analysis. If you are new in this field and you have no idea what is market property analysis, then you need to read this article. It is a kind of research on the current market values of the houses and properties that can help you to make a decision of buying or selling a property. However, you should not confuse it with appraised value because it is provided by a licensed appraiser and has no legal and financial worth.
Performing an analysis can be really difficult because there are a lot of factors involved in it. If you will use the systematic approach then it will be easy to manage it. So, how to perform this analysis and what steps are included in it? You have to follow the same principles that you use for the residential property. You will have to gather the data of the nearby properties in your area to compare them with your property by making a list.
You have to add all the objective and subjective things while doing the analysis in which total rooms, area, squares, numbers of bathrooms and kitchens, floor type, and construction time etc. are included. In the next step, you have to compare all the recently sold properties that are similar to your property. You can start this step from the houses that were sold within the past 2 months and then extent to 6 months. You have to consider the size, location, features, and all other things with your property.
In the third step, shortlist only 3 houses that were sold out in the last 6 months that are similar to your property and then determines how much amount owners got after selling them. It will help to determine how much amount you can receive after selling your house. If the prices are low, then it is highly advised to postpone the selling process. You can also search for the pending lists and gather the data that is useful for you. You can also see the expired lists to know about the reasons why those properties were not sold out. If the reason is that the prices were too high, then you should avoid this mistake. After the completion of this analysis, you will get the best Investment Property Price.