When you venture into buying a property there is a high chance that you may feel at sea. If you don’t have any previous experience in real estate, you may be confused and even helpless. But when it’s time to decide the price, there should be no place for confusion. After all it’s your hard earned money and most probably the most important investment in your life. So here I have 5 guidelines that will give you a better picture about your property price.

1. Ask yourself why YOU want that property

You have seen an apartment or a house that you loved and your mind is set on it. Now ask yourself is there any unique quality that makes it very appealing to you? For e.g. does it have a separate annex that would be perfect as your workplace? Or does it have a spacious balcony where you could see yourself creating a beautiful garden? Or maybe it is the mezzanine floor where you plan to make your children’s nursery.When you know how important that piece of  property is, you will know how much you are ready to pay for it.

2. Is the local real estate property market hot?

When we are scouting for our new home the first thing we do is zero in on an area. Then we start looking around in that area, exploring the neighborhood. Checking out buildings, apartments, potential properties, nearby amenities, facilities etc. It is very important that during this time you also know about how much in demand the area is. You should try to know if:

• The property prices are rising
• There’s a lot of demand
• There are any new constructions coming up

Moreover try to know if the market is stagnant or dynamic. Are there lots of potential buyers in that area or are there a lot of properties remaining in the market without a buyer. This information will give you leverage while negotiating the prices.

3. Has there been other offers from potential buyers?

A deciding factor in the pricing of your property will be how much in demand your property is. Are there other buyers who are interested in the property? Have they quoted a price? Try out Magic bricks where they provide a comparative chart of the prices of properties in any area.This requires a little effort from your side, nevertheless it is a very important thing. It will give you a fair idea as to what prices are prevalent in the area hence you will know where you stand.

4. The physical condition of the property

A rotten apple is often the shiniest on the top. Similarly a property may look perfect from the outside but you never know how it actually is. Maybe the plumbing is falling apart or there is a damp that is destroying its walls. Most people don’t come to know about these defects unless they start living in the house/apartment. It would be a good idea to have the property thoroughly checked. If you are not able to do it yourself, get help from a professional. For e.g., you could take a plumber with you to look into the lines when you are visiting the property.

5. Try to know a little more about the seller

A saying goes that keep your friends close but keep your enemies closer. And there is a reason for it! Don’t get me wrong, I am not saying the seller is your enemy, but it’s a good idea to know him properly.Try to know the reason why he is selling the house. Is it because his work demands him to move immediately? Or is there some other problem which may become a headache for you in the future. This information will give you leverage and will allow you to quote a price at which you are comfortable.Real estate investment is hard work, I agree, but it’s also rewarding. After all, the end result will be a secure and safe future for you and your family.Hope what I shared with you will help you in your search for the perfect property. However if you learn something in the process do share it with me.