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How will housing prices develop in the next year and a half?
Gabriel Diezi: The improvements we can expect vary greatly depending on the type of property and region. This was also reflected in our survey of the brokerage houses we work with. 89 responses show that since the rate hike, searching for buyers has become much more difficult and takes longer to market. In general, prices are expected to flatten or even stall, and there is even a slight downward trend in the case of condominiums. However, there will be regional differences. As Bestag, we share this evaluation. If inflation, that is, devaluation, is taken into account, prices decrease in real terms. Basically, it can be assumed that the upper prices will become more difficult to realize.
Their specialty is to compare brokers. How do good brokers differ from bad ones?
A good broker is characterized by his experience, regional expertise and knowledge of the local market. Last year, a good real estate agent sold many comparable properties in the area within a reasonable time and without price adjustment. Many in the industry will claim all this, but the statement is unlikely to be checked as past sales are not easily viewable online. Therefore, we have created a database containing all available information about past sales. This allows us to preselect agents based on data based on 15 criteria.
Do many homeowners willing to sell overestimate the value of their property?
We are experiencing both over- and under-estimates. Property prices in Switzerland have nearly doubled on average over the past two decades. Therefore, long-term owners are often pleasantly surprised. On the other hand, many greatly overestimate the value of their property – their views do not correspond to market reality. Property valuation is not an exact science, so we try to get as close to “real” value as possible. To do this, we turn to five professional evaluations: evaluations from the three best agents locally, as well as two benchmark value procedures. This layout makes outliers prominent, and the true value of the feature can be narrowed down.
Do you think there is too much nepotism in the real estate industry? How do you recognize this feeling?
Nepotism occurs wherever counter-trade is possible. An example: When a notary offers a broker who fulfills the prescription for him in return. Another example of felt is when banks recommend brokers who have mortgage deals with them. Either way, you rarely get the advice of an independent broker. When it comes to advice, it should always be questioned what the other person’s interests might be, even if a trust relationship has emerged as a result of a long-term business relationship.
What are the biggest challenges or obstacles when selling a property?
On average, Mr and Mrs Swiss sell a property less than once in their lifetime. Honestly, what’s really good the first time? That’s the main problem. There is a lack of knowledge and experience on the seller’s side. On the other hand, there are many actors – namely brokers – who take advantage of this knowledge gap. However, broker selection is of central importance when selling a property. If you pick the wrong real estate agent, it quickly gets on your nerves and gets really expensive. Not primarily because of a very high commission, but rather because of a very low selling price. Because it is easier for brokers to sell cheap. We can solve this with the intermediary competition on the one hand and the bonus/malus system on the other.
Please tell me your top three tips for selling real estate.
First, choose brokers based on well-founded research, not advertisements, mailbox flyers, or recommendations. Admittedly, this is quite difficult as historical sales data is not publicly available.
And secondly?
Get multiple reviews – always worth comparing. Outliers are noticed, you learn more about different assessment methods, and you can question assessments more critically. Also, if the participants are informed, the contest leads to better offers.
Your third tip?
Critically question the points in the brokerage agreement. It is important to identify the right financial incentives in the brokerage contract, such as a bonus/penalty mechanism. If a higher selling price is achieved, the broker enjoys a bonus. If the selling price is lower, your commission will be lower. This motivates the agent to achieve the best possible outcome for you.
Gabriel Diezi answered the questions in writing.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
