How and why to carry out a study of the real estate market.
A market study is an analysis of information and data on properties, prices, types of potential clientele, etc. There are several reasons that can lead us to carry out this type of study. We can do it, among other, to attract more customers, launch new products on the market or to be able to find the real market price of the assets in our portfolio.
There are several aspects that we must take into account when carrying out a market study:
- Data: a basic and very important element for a market study. For example, data such as the average price of the rental or sale prices of various homes in the area that we are studying are data of vital importance to prepare a valuable study, the more data you can get, the more accurate the study will be.
- Information: essential to know the state of the market globally. Having an overview will allow us to establish relationships and patterns between the data obtained and objectively assess which data is relevant and which is not.
- Our objectives: they must be very clear, it is of the utmost importance to know if we are responding to the reasons that led us to carry out a market study. To know if we are achieving our goal, we must ask ourselves questions about them, in this way we can clearly see if we are getting the answers and solutions that led us to do so.
But what data should we collect to carry out a market study?
- Market data: these are the data referring to the properties in the area where we have established the study. The price per square meter depending on the location, the average rental price, etc. These data will allow us to make a global idea of the general state of the properties in the area of interest.
- Data on the population: the target audience. It may be on average salaries, the average period and price of a mortgage, etc. This will allow us to know the purchasing power of our clients to correctly focus our strategies and consider what services we can offer.
- The competition: the data on our competitors is of vital importance to know how the market is moving in the geographical area that we are studying. Knowing the competition well will allow us to know what their objectives, strengths and weaknesses are, being able to anticipate our strategy.
Why should we be guided by a real estate advisor?
Market studies are something very complex that contemplate many variables to take into account. A good market study should offer socioeconomic indices, data on market and demand. If you use the internet or private, or public entities that can provide you with certain information, you will surely not be able to obtain all the necessary data to be able to carry out a high-quality market analysis. On the other hand, resorting to a good real estate advisor will mean cooperating with a specialized professional, which will save you a lot of time and effort, making sure you have a very complete study that will allow you to propose a much more effective sale or purchase strategy in the chosen geographical area.