Real estate market analysis pdf is a 100% free tool that will help you get sellers and buyers into your real estate business. With this real estate market analysis pdf, you will get the Advantages and Disadvantages of selling and buying homes. It can be one of the most critical elements of the sale or purchase process – and key to realising your monetary objectives.
Our real estate market analysis pdf serves as a real estate thesis, which includes information on the local real estate market and the company that you will be analyzing.
the study of the market and its evolution
As a first step, it is important to be informed about the market in a global way. The objective is to improve knowledge in this field: market volume, trends, likely evolution.
Here is an example of a list of questions to ask when studying the market and its likely evolution:
- What is the volume of the market? In particular, in terms of turnover, customers, quantity sold?
- How is the market doing now?
- What are its prospects for the coming years? A market may be growing or stagnating.
- What are the current market trends?
- What products or services are available in the market?
- Who are your direct or indirect competitors? What do they offer? What are the commonalities and differences between what the competition offers and your range of products/services?
- What are your terms and conditions of sale?
- Who are my potential suppliers and what terms and conditions can they offer me?
These questions will allow you to develop your knowledge of the market situation and the players involved.
We recommend you check this guide to conduct a market survey.
Put your team to work
Now that you have a good idea of what the house is worth, your final step is to get the ball rolling and put your local market real estate team to work.
Have your local real estate agent or property manager visit the property. If you’re still building your team, check out Roofstock’s partner community.
Your boots-on-the-ground team should pay close attention to curb appeal, landscaping, neighboring houses, overall property condition, and the need for any immediate repairs or updating. Out-of-state investors can also use Google Maps or local companies that provide aerial drone video and photography services.
Also, compare the data on your market analysis to the actual features and amenities of the subject property and the information from your property inspection report. Mistakes can and do occur on listings and even county assessor websites.
Studying the demand
By studying the demand, the objective is to know the customers in the market and to evaluate if there is potential to be exploited. Here is an example of a list of questions to ask when considering demand in a real estate market survey:
- How many customers are there in this market? How is this number changing (increasing, decreasing, stagnant)?
- Who exactly are these real estate customers? Where are they located?
- What is the consumption rate of the customers? How do they behave?
- What are the consumer’s choice criteria? What is their budget? What are the important points to trigger a purchase?
Calculate average price of comparable listings
With this information in hand, the next step is to create a spreadsheet for all seven properties – your subject property (the one you’re thinking about buying), the three recent sales, and the three homes actively on the market for sale.
Your first column should list each house by address. Then, create individual columns for specific features and amenities:
- Selling or listing price
- Square feet
- Number of floors
- Elevation
- Age of house
- Bedrooms
- Bathrooms
- Kitchen upgrades
- Bathroom upgrades
- Recreation room or bonus areas
- Enclosed patio or sunroom
- Basement
- Attic
- Water heater and furnace condition
- Central air-conditioning and age
- Roof age, condition, and roofing materials
- Garage, carport, or on street parking
- Swimming pool
After you’ve filled out your spreadsheet, calculate the average price per square foot for each of the seven houses.
Studying of the offer
The analysis of the offer consists of studying in detail what your competitors already offer in the market. Here is an example of a list of questions to consider the offer:
- Who are the competitors in the market?
- Which companies have the largest market shares?
- What is the size of the main competitors? Where are they located and how do they choose their locations?
- How long have they been around and what is their financial health?
- What criteria do some competitors use to succeed better than others?
An in-depth study of your competitors’ offerings can help you identify opportunities to prepare your future offerings and gain competitive advantages.
Through a real estate market analysis you will have a better understanding of what works, the essential criteria for success, and also what has not worked.
Select comparables for your real estate market analysis
Begin your initial real estate market analysis by selecting six comparable properties. Three should be homes in the neighborhood that have sold within the last few months; then choose three more homes that are currently on the market.
When selecting comparables for your subject property look for:
- Homes with the same number of bedrooms and bathrooms.
- Houses having square footage within 10% to 20% of your intended purchase.
- Property with a similar lot size and shape.
- Select houses with a similar original construction date, elevation (also known as architectural design), and number of floors or stories.
- Homes with similar features such as free standing garage, outdoor swimming pool or patio deck, and scenic views.
- Choose homes in the same neighborhood and preferably on the same block.
- Select properties that are in the same school zone (because a low-quality school can have a significant negative impact on value).
The environmental and legal study
The environmental study consists of analyzing the factors that may influence the market, such as applicable regulations, technological developments or any other element that may have an influence.
Here is an example of a list of questions to ask when studying the environment:
- What innovations are affecting the market?
- What is the regulatory framework governing the market?
- Are there laws specific to this market?
- What are the trends in the evolution of legislation?
- Are there professional groups or other actors acting or influencing the market?
Obtain property value estimates for the area
Calculating the average sale price per square foot for home sales in the area you’re considering is a good way to determine a “ballpark” property value estimate. Local real estate agents, property management companies, online listing databases, and the county assessor website are all good resources to use.
Keep in mind that these average calculations are just that. They don’t take into account unique aspects of the house or the neighborhood that may increase or decrease the value of your subject property.
Data collection process
The data collection process is one of the most important steps in conducting real estate market research, as it allows you to gather information that will help you determine if the project is viable and your investment is secure.
QuestionPro allows you to easily conduct your field research to get the data you need. It doesn’t matter if you don’t have Internet, our Offline App allows you to conduct surveys through mobile devices and download the information once you have a wifi connection.
Conduct real estate surveys and start getting the information you need to secure your investment in the real estate market.
Research neighborhood quality and amenities
County assessor websites and Street View by Google Maps are excellent tools to use to research and narrow down potential property purchases without ever leaving your office. If the house backs to a garbage dump or major highway you can simply delete the property from your list and move on to the next one.
Other neighborhood qualities and amenities that affect property value include closeness to public transportation, proximity to shopping and schools, and nearby recreational amenities like parks and beaches.
If you have your eye on a particular single-family home, you can also pop in the address into Roofstock’s Cloudhouse tool. You’ll get a comprehensive and fully customizable underwriting estimate, as well as a 1-5 star rating of the neighborhood powered by Roofstock’s proprietary Neighborhood Rating.
Reporting the results
Presenting a report with the information obtained will allow investors to perform an analysis and determine the best strategies to secure the investment.
Our survey software allows you to visualize the collected data in real time, which helps you to pre-analyze the information and prepare a report where you highlight what is relevant and stakeholders can visualize it and make better decisions.
Start standing out in the real estate industry by making the right decisions with the help of data!
Conclusion
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