In principle, there is a market place for every kind of property. A buyer exists for everything. It is a question of targeting the right client, presenting your property accurately & in the best light, at an acceptable price for all parties.
Looking at each of the 5 key variables in turn,
- Rate your property as it is now & add the scores together. Then
- Ask yourself which variables you can modify & by doing what.
- Make a simple action plan to upgrade the low scoring factors. You really need a score of 45 or higher out of a maximum of 50 points, for a quick, successful transaction.
Location – is everything. But you cannot change it. You might be able to point out how the area will improve in future years because of planned changes, but otherwise, you have to live with whatever score you get.
- A grade 10 points = Amazing location, highly sought after, unbeatable spot
- B grade (7 points) = 10 mins drive from A-grade location
- C grade (4 points) = Unpopular location, long commute, difficult road, intense traffic
- D grade (2 points) = Undesirable, has large downsides, special vehicle required
Condition – an expensive variable to modify, but can cause the greatest impact because transactions are usually based on emotions. A well presented or optimized place will win a clients heart instantly & cause them to want to live or work there.
- A grade 10 points = perfect condition, show home, no further improvements possible
- B grade (7 points) = Nice basic condition, no major problems, can be uplifted
- C grade (4 points) = Needs work, has definate room for improvement, not optimal
- D grade (2 points) = Run down, damaged, needs total upgrade
Price – again, an expensive variable to play with, but less effort needed than Condition, and less risk involved than upgrading the condition to tastes that the market might not agree with.
- A grade 10 points = Good price, will appeal to some clients
- B grade (7 points) = Acceptable to some, expensive for some
- C grade (4 points) = Expensive, out of most peoples acceptable range for offer
- D grade (2 points) = Overpriced, bad value for money, unappealing to client
Market Size – hard to impact. You can optimize the market size by making sure the property is explained well, so all potential users are aware how it would suit them.
- A grade 10 points = Very popular to all clients, plenty of requests
- B grade (7 points) = Some clients for this type of property, not over popular
- C grade (4 points) = Small market for this type of property, expect long delays
- D grade (2 points) = Almost no market for this type of property, expect extended wait times to sell/ rent.
Market Presence/ Visibility – this is the easiest variable to modify & there are no excuses for not doing your best if you really want a transactions.
- A grade 10 points = Highly visible to market, premium ads in place, respected company banner, newspaper, websites
- B grade (7 points) = Partially visible, lacking a banner or premium adverts
- C grade (4 points) = Not very visible, no banner, no premium ads
- D grade (2 points) = Invisible to market place, no web ads, no banners, barely known about.
What next? how can you help yourself to reach a transaction? The good news is, the answer is surprisingly easy. Using a gap analysis. In other words, look at where you are now & which things you can modify to improve your chances. Look carefully at each variable & aggressively look to improve each rating.
City centre 1 bed apartment for 395 euros:
- Location – perfect (A =10 points),
- Condition = fairly decorated (B =7 points),
- Rent price = fair price (B =7 points),
- Market size = popular (A =10 points)
- Market visibility = (C =4 points)
Total score 38 points from a possible 50. Not good enough. You need 45 points or more for a certain transaction.
Gap analysis says:
- Location – no change possible, already perfect (A =10 points),
- Condition = no change needed, fairly decorated (B =7 points),
- Rent price = change from 395 to 350 euros (A =10 points),
- Market size = no change possible, already popular (A =10 points)
- Market visibility = (A = use premium advert & agency banner = 10 points)
Total score 47 points. Excellent chance of a successful transaction.
Premium adverts help significantly because they allow your property to stand out from the crowds. With thousands of users every day uploading to sites like Imobiliare.ro, when you places regular online advert you get pushed back quite a few pages before you know it. Max exposure while the property is fresh to the market is key.
Gradual, extended exposure with small price reductions can damage the chances of a quick transaction as people searching get used to seeing the property & disinterested. Much more effective is to enter the market with a splash at a good price.
For a free evaluation of your property or help with renting or selling your property, please get in touch with us. We have a broker team in each of 2 offices, Brasov & Bucharest, with a wealth of experience & the desire to help you get the best price. Contact us now via:
Bucharest office: +40 31 434 0732
Brasov office: +40 268 416522