Price valuation is a key element in the housing transaction
The price estimate is probably one of the most important things for home sellers to think about. Indeed, the price estimate plays an important role in the success of a home transaction and in selling a home quickly.
It is best to leave the valuation of your home to professionals who know how to take into account all the factors that affect the price. A qualified estate agent will also be able to justify the price estimate to the seller.
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Why is a price estimate so important?
Home price valuations and asking prices play a huge role in real estate transactions. No one wants to sell their home for too little and lose out. If the asking price is too high, buyers will be put off, making it difficult to sell.
Sometimes a real estate agent may give too high a price estimate in the hope of getting an assignment. It is therefore worth remembering that the highest estimate is not always the best, and you can ask the agent to justify the price estimate.
How is a home price estimate made?
There are a number of factors that affect the price of a home. Real estate agents use a price monitoring service, which provides them with information on the actual prices of similar properties. Statistics are therefore an important but not the only element in the price estimation process. In addition to the actual sales prices, the price estimate is influenced by the asking prices of homes in the area at that time, i.e. the competitive situation on the market.
In addition, the price estimate should take into account the general price trend, which is often related to the general economic situation of the country. In Finland, the geographical location of a dwelling also plays a significant role in determining its value. A professional real estate agent will be able to take into account not only the general price trend but also the regional price level.