The real estate market has had great moments in recent years. In 2021, launches of new units reached 265,678, an increase of 25.9% compared to 2020. Sales also grew 12.8% in the same period, reaching 261,443 units.
According to data from the CBIC, the average price of residential properties rose 10.38% in 2021, driven by rising construction material costs.
Constant growth was due to low interest rates, but the scenario has become a little more complex after the Central Bank raised the basic interest rate, the Selic, to 10.75% in February 2022. With the war scenario in Ukraine and constant increases in oil prices, interest rates are expected to rise further in 2022, which could be worrying for the real estate market.
It is necessary to be attentive to changes in property values, to the economy as a whole and to changes in financing conditions in order to be able to evaluate properties already built and update the evaluation of properties under construction.
Let's look at some technical details for evaluating real estate.
What is real estate appraisal
NBR 14653 is a set of norms stipulated by ABNT to define what a real estate appraisal report must contain.
NBR 14653-1: General Procedures brings the evaluation of goods as the technical determination of the value of a good, its costs, fruits and rights, as well as its viability of economic use, for a specific situation, date and purpose.
The set of ABNT standards also contains indications for specific cases:
- NBR 14653-2: Urban Real Estate
- NBR 14653-3: Rural properties
- NBR 14653-4: Developments
- NBR 14653-7: historical and artistic heritage
Market comparison method
The comparative data method is based on collecting information on properties with similar characteristics to stipulate a value consistent with the market.
This method is directly related to what the ABNT NBR 14653-1 2019 standards indicate as the most appropriate when evaluating a property.
The comparative method needs to identify the relevant depreciation and appreciation factors of the property so that it can collect data, analyze and stipulate a price.
Let's look at some variables.
Supply factor
It evaluates the variety of properties on offer in a sample according to what is on the market.
Location factor
Determines the value of the property according to the location, the valuation of the area in which the construction is located. This factor considers other items such as security, proximity to central locations, value of surrounding properties, evaluating the position of the sample properties in relation to the address of the object of the report.
Topography factor
Rough terrain can lose up to 30% in value compared to the same neighboring terrain that is flat. Here there are other variables such as the propensity for flooding, the minimum distance to be observed for construction in relation to the limits of the land, the amount of preserved area required by the responsible bodies, distance from streams, rivers and springs.
Front x back factor
Corner furniture has a higher value than regular lots. Irregularly shaped land can be depreciated. A larger front area also values ​​the property, they are factors to be considered in the evaluation.
Constructive standard factor
This assessment is made by comparing the quality of the constructions and the average of what is found in the plans in the configuration of the properties in the region. The floor on which the property is located (if it is an apartment) also influences: the higher it is, the higher the value tends to be.
Age / conservation factor
Newer properties are more valued than the old ones, following the logic. However, the conservation factor can end up depreciating a new property in poor condition and valuing an old property in good condition. The hydraulic, electrical and gas installations must also be evaluated.
Footage
The size of the rooms, the kitchen, the bathrooms and the general footage of the property is something to be compared with properties in the region. From an average it is possible to see if the property in question follows the pattern or not.
These are some of the factors that can be considered in the comparative method, which uses statistics and calculations to take each of the variables into account. There are different ways of treating the collected data, such as linear regression.
To treat the collected data, consult already defined norms, such as NBR, the norms of the IBAPE-SP and RJ, for example.
Conclusion: advantages of real estate appraisal
The comparative method is the most common in the property valuation and can be applied by realtors and engineers with credentials to do so.
After collecting the data on the different factors that influence the value of the property, they must be treated and compared with the other constructions in the surroundings to define whether that property is above or below the average for the region.
Data from Secovi-SP show that property sales should grow by 27.3% between February 2021 and January 2022 compared to the previous period, from February 2020 to January 2021.
With the increase in property sales, the evaluation of each unit is important so that the price practiced is consistent with the market, taking into account inflation, interest rates and other variables, thus guaranteeing your profit!
Learn more about the real estate and development market with an exclusive live on digital transformation. You can follow all the trends and latest news from the market on the blog of Globaltec.
Keyword: property valuation
Seo Title: Learn about the comparative method of real estate valuation
Meta description: Do you know how the comparative method for property valuation works? Discover the most used strategy in the real estate market.
14 recommendations for you realtor to start valuing your services!
Source: Globaltec SA
Do you often feel that your customers don't value your work? Are you improving more and more as a broker to provide the best possible service, but not being recognized?
Usually when receiving his commission, the client wants to negotiate it down! Would you like to reverse this situation and have your real estate services really valued?
So that this can be solved, here are some tips for your real estate services get the recognition they deserve. See how to create differentials and add more value to your commitment as a realtor.
Think and reflect: do you value yourself? Do you value your services?
This question is very relevant and should be asked yourself. The answer may seem obvious, but it is not. How much effort we exert to get there, to provide the best consultancy and assistance, to get the best condition in a property, but in fact we do not give ourselves the importance we deserve.
Now don't be surprised, this happens in every profession.
The big controversy is that we cannot expect from others what we ourselves are not able to give ourselves. It could be due to personal problems, stress at work, tiredness due to excessive daily tasks, sleepless nights or few hours of leisure, none of that matters. Most of the time, we turn on the automatic and intuitively believe that this is the best we can do.
But before seeking appreciation from your customers or superiors, you must give yourself due importance, as a person and as a professional. Take your profession/career more seriously, it is regulated and just as important as any other. It charges according to good market practices, yes, but also according to what you deserve to earn for all your service and effort. Don't negotiate commissions, don't work for free, don't evaluate yourself just so you don't lose the client.
Be very careful when doing favors, such as giving a friend a free evaluation or advertising for free on your website or social networks to other professional partners, sometimes they can make this a habit and reduce their own perception of value of your services real estate.
Make investments in you, broker!
I believe you may have heard that the best investment is investing in yourself, but are you currently practicing this?
Nothing replaces the knowledge, training, not even talent. Therefore, create devices so that you always have time to take courses, learn a new language, read a lot, attend fairs, events, workshops, meetings, always be well informed, increase your networking, travel, seek knowledge in other areas of the real estate market.
Currently, the very relationship with the customer has changed: he wants to buy the property, but he wants the security of knowing that he is buying with an expert.
So invest in your career, expanding your knowledge to all matters related to real estate services.
And they are many, such as decoration, architecture, urbanism, investments, quotation, landscaping, financing, hereditary, inheritance, civil rights, etc.
You will be able to opine, give ideas and create images in the minds of your clients, from the renovation of an apartment that apparently is destroyed, for example, or the integration of spaces in a house apparently smaller than they expected, or even giving an urban opinion on an enterprise.
This can make all the difference in the purchase, anticipating the negotiation period. Any extra information and knowledge you have will demonstrate preparation and training, positively impacting your customers.
Be an expert in at least one area
Along the same lines as the search for more knowledge, specializing is always an excellent path, but remember, you will usually win the client for your specialty, but you will earn real money for the plurality of knowledge, that is, solving problems and promoting the solution!
Of course, you must be prepared to work in various aspects of real estate services, after all, in times of crisis, the realtor has the advantage of having several fronts that can be opened, such as sales, rent, luxury properties, condominium management, season, property capture, appraisal, rural properties, subdivisions, etc.
But how about turning one of these fronts into your specialty? See which of the activities has more to do with you as a realtor, which one you perform with greater pleasure and ease. So, work on your profile in this regard, taking courses and seeking specific training when necessary, reading a lot about the subject, gathering references from work already developed in the past. Try to become a reference in this niche and start building a strong name in the market.
Give yourself more time!
The realtor's daily life is hectic with countless activities inside and outside the office. Even in the face of so much demand, you must find a way to have more time for yourself. Look, the reason is simple: no one can do everything alone, be strategic, use technology and delegate tasks, because tiredness doesn't let us think with our full potential and burnout comes slowly, often confusing our mind without that we can understand.
Some things won't work out, you'll always need to visit real estate, find your clients, take them to notary offices and provide a complete advisory service. But there are others, those that are part of the real estate's day-to-day life, such as updating records, managing the agenda, sending payment slips and reminders, inserting and updating advertisements on the website and in partner portals, organization of each client's data, etc.
A good solution for this is hiring a collaborator or business partner aligned with your purpose and automating tasks, which you can achieve with good management software that has a CRM (Customer Relationship Manager) integrated. With this, it will be possible, whether you are a real estate agent or a self-employed broker, to automate several routines that take away precious time every day, freeing up more free hours for whatever you want: studying, dedicating yourself to your relationship with customers, capturing real estate, invest in real estate photography, spend time with family and rest.
Broker always stay up to date with technology
As we are talking about automating day-to-day procedures, keeping up to date with technology is a matter of survival. Currently, the broker who does not understand that the way of relating to the client has changed, and also the relationship with the media, will lose badly to the competition, consequently will not create differentials that value their real estate services.
In view of this, offline dissemination is increasingly falling into disuse. The client is on the internet, so the broker must be on the internet. According to Google itself, 90% of all real estate transactions start online and at least 60% of them remain online until the deal closes and continue online after that, after the sale. These days online customer service offers far more opportunities than just cold phone calls. WhatsApp, Facebook, Instagram, email, chats and other social networks in general are your allies.
Dedicate yourself to after-sales
The purchase process and procedure goes beyond signing the contract and one way for you to add value to your services is to provide differentiated after-sales treatment by relating frequently with your customer. If you think it's not worth being deceived, a well-executed after-sales service can guarantee a new sale or referral to other customers.
Whenever a satisfied customer refers you to a friend, relative or acquaintance, he is valuing your services, regardless of whether or not he negotiated his commission in the first place. This means that, in spite of himself, he is recognizing your work, to the point of trusting you for a new purchase, sale or to refer a friend or family member. Above all, even if there was some stress in the negotiation, do not neglect the after-sales service, because it can guarantee a much faster and more successful deal later on.
Stay Organized in the Real Estate Profession
There is an old popular saying that "there is a certain amount of organization in the mess", but it really doesn't pay to bet on it! Respond quickly: how do you find all of a customer's data when you're caught off guard by a call?
Do you gather notes spread across the table or do you open disorganized files on the computer?
This is not always an easy task, much less a quick one, but enough for the customer to realize that you have no idea how things are going or worse, who it is.
Organization is fundamental for the broker who wants to be properly valued. After all, there are so many customers, contracts, documents, requirements and payments from buyers and sellers that confusion is common. This confusion, in addition to wasting time and productivity, also denotes a certain degree of amateurism, which leads to a lack of credibility.
This whole situation can be resolved, with training for the team and a system for brokers capable of organizing everything in one place and so that it can be easily accessed whenever necessary, even remotely.
This way, you have access to the client's details, the properties that have already been visited, the progress of the documentation, your personal observations about the negotiation, the client's characteristics and even which brokers on the team that client has already had access to.
You will have a complete and very quick feedback that allows you to give a personalized service, valuing your services.
Be vain and keep a good appearance
Appearance will help a lot when it comes to the realtor to convey credibility and professionalism, and believe me, your valuation may also depend on your presentation. This does not mean that you should only wear expensive clothes, but you should observe some aspects when composing your professional image.
For example, be loyal to your style and profession. If you are a very relaxed person, be careful when receiving your client, try to maintain a balance point.
You can wear jeans, a shirt and sneakers, unless the environment requires special formalities, such as a jacket and tie. These tips are independent of gender, in the same way, if the outside environment is one of the hottest, it makes no sense to get all sweaty inside a blazer. Use common sense and understated elegance.
Speaking of discretion, always prefer neutral tones, they are easier to combine and create empathy with other people. Choose well-cut clothes that are in good condition, as well as shoes, sneakers or heels.
When in doubt, do an online search and see some examples of how a realtor should dress. Remember that it is not you who have to appear, but the property and the relevant information about it.
Have personal hygiene and proper diction
Personal hygiene is mandatory. Hair always clean and well cut, clean shave, hands sanitized with clean and well trimmed nails.
Beware of sweat, avoid perfumes with strong fragrances, as there are people who are allergic and many may not share your taste. At work, only use a good deodorant with clothes that dry easily. Also be careful with your diction and language, avoid slang.
The Portuguese language is rich enough for you to communicate very efficiently. Also avoid very complicated words or professional jargon that your customers may not be familiar with.
By the way, pay attention to your tone of voice. It should be loud enough to be heard at an average distance of 1.5 m to 2.5 m, no more. Speak slowly, clearly and calmly. Always listen to what the customer has to say so you can respond appropriately, but if you don't know the answer, don't guess. Say you'll research and respond as soon as you have the result, and do so.
And never, under any circumstances, change your tone of voice or expire, no matter how difficult the customer is. Avoid being surprised or tired when speaking, be careful with the athlete, she can represent a lot, in a negotiation remember: you are the professional. The client may just be having a tough time or be extremely nervous about the investment that is about to happen.
Be sincere and extremely professional
We know that we sell to make a profit, because a professional who does not make a profit is not ethical with himself, however, as much as you need that sale, don't try to sell "any way". Always respect the moment of the client, after all he is the fundamental element in this transaction.
Essentially, everything in this life is an exchange, albeit an unconscious one: if you value the buyer's dreams, needs and doubts, he will automatically value what you are doing for him.
For this reason, be frank and honest, earning their trust at every step of the negotiation.
Always act ethically, within the parameters of the law and good customs. Never camouflage situations, debts or any problem that may exist.
Think that if that property is not ideal for that family, company or person, what are you going to find. Commitment to the best results always generates appreciation for your work.
Also remember that no matter how friendly you become with the customer, this is still a professional relationship. Therefore, always maintain some limits, without forcing intimacy. Of course, nothing prevents the friendship from continuing and becoming stronger after the contract is closed, but during the negotiation, always be as professional as possible.
Build partnerships and expand spaces
Even if you prefer to be a self-employed liberal professional, you need to broaden your horizons through partnerships with good professionals in the field! remember: birds of the same plumage they fly together! If your client sees that you are associated with other great professionals in the segment, this will help to have your real estate services valued.
However, there is little care when choosing your partners. Be sure that he has the same line of work as you, that he thinks like you about relationships and respect with customers and that this partnership will really bring benefits to both parties, in short, alignment of purposes. Look for another broker or real estate agency that complements your services.
Choose real people with a good history of negotiating and closing contracts, or a great real estate agent, appraiser, administrator, developer.
Don't forget that a wrong partnership can bring a lot of headaches to your day to day, such as financial loss to you. If you don't know the future partner, look for references with professional colleagues, on the internet and even with some clients.
Build a beautiful name in the market
Customers' perception of the value of their services also involves valuing their own peers. Being respected by the market is an important step for customers to see you with different eyes, from the very first moment. Building this image is not an easy task, nor does it happen overnight.
Be competitive, but always straight and helpful. That means help before they ask you to. This can be common in real estate plantations, for example, where competition is usually quite fierce.
Offer to help and make it clear that you don't expect anything from it, putting the other broker at ease.
Promote networking, be interesting and not self-serving, chat, publicize yourself among other brokers, but avoid talking only about yourself. Be friendly without seeming arrogant, make yourself available, think of a way to contribute without necessarily gaining anything in return.
Refer clients to another broker or real estate agent who is in a difficult situation, even without sharing the financial results. This can be more lucrative than you might think later on. Don't speak ill of people but of situations, praise those who deserve it publicly.
Be strategic and ask the right questions for your client
Imagine a hypothetical scenario, the customer has just made contact with you, he may have come from different sources of relationships, such as your website, social networks, online, offline media, in short, pay attention to an important detail: these are the questions that move the world and not the answers.
How about starting a relationship from there, asking and understanding what he needs? You can use a CRM to automate the process or do the service manually, however, start collecting information from the first contact. From there you can start putting together your strategy to offer the solution. Remember, the customer only buys one thing from you: a solution.
Now that you know this, just start creating an individualized relationship with him, this shortens the negotiation time and you will have more chances to offer the right property, at the right time.
Invest in value creation
Owning valued real estate services is your right and it depends on you! But that doesn't mean you don't have to fight for it. Remember that most of the time, the customer's attitude is basically a reflection of the professional himself.
Valuing your work should start with yourself, with attitudes and positions that create service differentials. Invest in training, courses, training, knowledge and a lot of action.
On reflection: are your services having the return you expect? What have you been doing to generate value in what you do?
Come on tell me! How can I help you?
Keyword: Realtor
Seo Title: Check out recommendations for you broker to value your services
Meta description: Advice for the realtor to sell more and better. Cherish your work and conquer more people!
Text: What are the qualities to become a successful realtor
Link: https://blog.play2sell.com/en/successful-real-estate-broker/
The realtor operates in the real estate sector with the perspective of meeting a growing demand for housing. In addition, this market professional mediates between the buyer and the rules of the real estate sector, which, after all, are not easy.
The coincidence is that, being a successful realtor, projects new business opportunities and makes this professional can be seen as an inspiration for the real estate sector.
Text: 5 tips to increase the productivity of realtors
Text: How to improve your decision making in the management process
Link: https://blog.play2sell.com/en/decision-making
With integrated information and automated management, decision-making for construction company managers becomes much more assertive. However, selecting the best strategy requires business clarity and a lot of courage to change.
Therefore, as the business reaches stages, it is essential that the manager continues to study the market and the transformations that directly impact the company's management.
Text: Integrated management for construction: accurate reports for decision making
Did you like the article? Subscribe to our newsletter and receive much more in your email!
