This post is the first in a series of posts that will serve as mini guides for everyone involved in property management in Boston. Whether you are a property owner or a buyer, these guides will help you understand the process and make better informed decisions.
Setting the Right Price When Managing Property in Boston
Most property owners are aware that when hiring a property management company, you need to carefully review the services they provide. A lot of companies operate in Boston and other cities of Massachusetts providing a host of services that are meant to ensure that your property – whether a condominium, an apartment or a multi-housing complex – are well taken care of.
Some of the property management services that most property owners look for are maintenance, rent collection, home screenings and market analysis. An important aspect of managing a property that is essential especially in the initial stages of renting out or selling your property is the comparative market analysis.
Do you carefully review the report presented by your property management company? If not, then you should.
What is Market Analysis in Property Management?
Comparative Market Analysis is the process of evaluating the price of a property based on an in-depth analysis of the current market. Most property management companies in Boston will usually offer this as part of their property management services. The report outlines key elements that decide the value of your property.
A marketing analysis usually involves a number of factors that are taken into consideration to reach a final estimated amount. Some of these are:
- The size of your property
- Important features that mark the property or make it unique
- Analysis of comparable properties in Boston
- Prices of similar properties sold or rented recently
What is the Right Price for Boston Properties?
Property management in Boston has seen a number of highs and lows over the past few years. One day it’s hot and the other day it’s cooled off. So, staying on top of real estate news is imperative.
When pricing your property, the important thing to do would be to take into account any recent changes in real estate laws and markets in Boston. A local property management company in Boston is probably a safe bet in this case since companies based out of the city will usually not have sufficient information to handle local properties.
Another important factor for deciding the price of your house is its features. Do you have an extra wide patio with a carved double door entrance? Does your house have more rooms than other comparables? Is the garden large and well-manicured?
A couple of months ago, we saw a perfect little house with a marvellous backyard that would charm any family with children. However, the house was located two houses away from a railway line. Not the ideal home for children, is it? This house would probably be almost impossible to sell at the same value as other similar houses in better locations.
If you are involved in property management in Boston, you need to be careful about these and many other factors when setting the price of your home. Stay tuned for more property management guides.
What do you think? What important considerations do you have in mind when setting the right price for your property in Boston?