Thursday, July 17, 2008

Time taken to sell houses up 20% in last six months

The average period in which a real estate property is put up for sale and finally gets to be traded grew by 20% in the last six months, according to representatives of the real estate company RE/MAX Romania.

"The average time for the sale of real estate properties grew by 20% in the last six months, reaching even up to 12 weeks. However, if the selling price is 10 to 30% below current prices in the market, the building or the dwelling sells within 30 days. We had cases in the RE/MAX network when, in the same conditions, the properties were sold in 5 days", said Paul Dumbrăvanu, Broker/ Owner of real estate agency RE/MAX Star.

According to the RE/MAX statistics, the period during which a property enjoys maximum interest from the potential buyers is five weeks, at present. "After this time limit, the interest of the buyers for the property drops to around 15%, starting from the 7th week of stationing in the market, requiring the repositioning of the property in terms of price, so that the interest for it would rise again", is the opinion of Dan Tărăcilă from RE/MAX Star.

According to RE/MAX representatives, real estate assessment is carried out through three main methods and techniques: direct comparison method (the estimation of the market value is made by comparing it to similar properties, this technique offering a fairly accurate picture of the value of real estate), the cost method (which estimates the cost to construct the existing building and then deducts the depreciation of the evaluated property, estimated at the date of the evaluation) and, respectively, the yield method (the property is considered as an investment that generates an income).

RE/MAX Romania registered a growth of over 100% in its office network, in the last 12 months, from 11 offices in June 2007, to 23 active offices in the same month of this year, other offices already being under establishment. As regards the number of real estate agents, RE/MAX Romania had a total of five agents in January 2007, while their number amounted to 43 in June 2007. Over the last 12 months, the number of RE/MAX real estate agents increased by 147%, currently amounting to 109.

At global level, RE/MAX is one of the leaders in real estate sales, according to independent statistics conducted in this industry: a RE/MAX real estate agent trades, on average, 4.5 million dollars a year.



1 comment:

Justin Sara said...

I've ever seen, you can include some more ideas in the same theme. I'm still waiting for some interesting thoughts from your side in the next post. One thing I just want to say is that your blog is so perfect!
Condo Price Singapore