Why Property Valuation is necessary?
In real estate investing, investors invest in property and then give those properties on rent to get income and profit. Investors are often confused while evaluating property types and values. The first thing that comes to mind is how much money they should pay for a particular property. Pricing a real estate property is called property valuation/real estate appraisal.
The Property owner may set high property prices according to their wishes to benefit investors. Therefore property valuation is required to protect the buyer from paying too much for a real estate property. Moreover, The first thing that comes to an investor’s mind is how much money he has to pay as a fair market value for the property according to its features and neighborhood. Thus they need answers to the following questions:
- How do the prices of different properties vary yet have the same features?
- What is the difference in the price of properties located at the same location/building?
- Which factors influence the property value?
- How do changes in features affect property value?
- What are the Property price trends?
Solutions for Property Valuation
The solution will evaluate the property cost based on the different property features on which it depends and will check how the price of property changes with time and features. It will answer the question that we already discussed in the problem statement with a proposed approach and flow.
Property valuation helps to predict or value property with an optimized price. Moreover, With time and situation value of property changes; therefore, it needs regular evaluation.
User Story
- Property prices with the same features are different. Hence, investors need to investigate why properties have the same feature vary? An investor can pick Property Id: 1000 as it has the least price but the same feature as other properties.
- Moreover, prices of properties were continuously increasing, but now they started decreasing, and in the future, they can also decrease.
- Users know that the neighborhood is a feature that people are considering more while giving prices and choosing properties. So investors have to invest in the most preferred and good neighborhood/location. Moreover, users can also check how the property feature changes property value.
End Customer Value
It will share insights for property values according to their features. It also tells which feature affects the sales price more and how the change in property features changes property value. Moreover, it compares and gives prices of properties with the same feature at different locations.
Why XenonStack?
XenonStack will give you a demo that will provide you with a full-fledged analysis report consisting of dashboards and visuals to help real estate investors evaluate a property and its features.
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