In any given real estate market, there can be hundreds to thousands of real estate agents. It’s important that you know what to ask your developer or real estate agent. As a buyer it is already perceived in mind that the “properties are expensive” but actually they are not. In this article we’ll help you to understand this.
First of all, it depends if you are working with a sales office i.e. if there is a middle man in between. Middle men will obviously not work for free as you fairly know that they have got bills to pay.
This is very well-known facts that real estate agents in Istanbul are taking too much commissions because they are directly in contact with the developers. Not only the higher commission but some of the agent offices have been seen exhibiting unfair differences in the price list for native and foreign clients separately for a same property. This is an agent driven factor and absolutely NOT fair!
Having said that, many other suspicious and fearful questions may pop up in your mind before buying a property in Istanbul. In this article we will help you overcome your fears and will discuss with you about “If your property is overpriced or not?”
- Return on Investment: Understand the value of property with respect to its price! Find out the rental return! If the investment is being returned in let say <10 years then it can be an amazing investment. If the ROI lies between 10 to 15 years it is an acceptable investment. If it is >15 years then you probably need to think again before investing.
“The shorter the time for ROI is, the better the investment is.”
Price & Location Index: If the price seems a bit high, then it does not really mean that it is an expensive investment. Most of you may know about the neighborhoods like city center or Beşiktaş, or Kadıköy and prices are higher in these locations, but it does not mean it is expensive, even though it seems high.
- Agent Effect: Be very carful about who you are working with. In Turkey, the fee an agent is legally authorized to charge is only 2% plus VAT. But you will hear and see agents asking too much money.Since the developers need the services of agent (middle men) to increase their sales in both local and international market, therefore, try to find out how much amount the agent is taking from the developer. Its is better to offer 2% legal fee to the agent, this will increase the chance of getting discounts from the developer and having a good business relationship as well.
- Ask Uncle Google: Google has answers to every business these days. It is much easier to consult google and find the useful information for your any given situation such as price comparisons, location comparison, nearby facilities and much more. For example www.sahibinden.com and other similar websites can be helpful for you to look at the market prices for the kind of property you are looking for.
As a beginner, being aware of your agent/developer and ROI is important factors to bear in mind before investing your hard-earned saved money because your long-term planning for your future is based on the knowledge in this area.
“The more you know, the more successful you will be!”
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