In booms in the housing market there is a housing demand which causes the key in the intermediation business is the supply side. In these periods, selling floors with ease it is necessary that housing agencies are able to set up a portfolio of homes to meet that demand. Marketing in these periods is focused on the owners. The main objective is to convince them that your home will sell soon and the highest possible price.
One of the main strategies used by agents in these periods is tax the property at a price above market , so it's easier to convince owners that agree to cede the management of the property to agency. For many estate agents seems that this is not the most appropriate way to work even if they originated in this way the competition will take away their market share.
During a property boom to brokers are not concerned that the selling price exceeds its market value. know that housing will be sold soon . If the property is taken at market value sale can be formalized within 15 days. If it sells for more than 10%, it will take around 2 months. And if the price is higher than 20% of the sale can be extended to 6 months. The agent knows that in these periods houses sooner or later be sold, unless its overvaluation excessive. This behavior generates an inflationary spiral leading to, in certain locations, the price of m 2 housing new and used (under 25 years) has a similar price.
Furthermore, when demand is significantly reduced these procedures disappear and stop selling new homes mostly on background. Now the reduced demand, and existing homes have lower quality than new ones, are more affected by reduced global demand. In these periods of housing crisis, given the same location of the property, the price of second-hand homes is reduced much more than the new. Now intermediaries change their marketing strategy seeking to stimulate demand for family homes and investors. The goal now is to get the landlord to reduce the price of your home. Many agencies now refuse to homes if they believe are overvalued. Do not worry about the availability of properties because they offer plenty.
important thing now is to get the highest commission possible, but try to perform more operations. To this end, it is necessary that the price of homes in your portfolio meets the conditions of this new stage. This particular operation can explain why the prices of previously owned homes suffer more swings, climbing higher in periods de auge y bajando en mayor medida en los de recesión.
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