The Value for Money Real Estate website is a real estate portal website aimed at the buyers, in which - all listed properties have been filtered by the VFMRE algorithm. The result is that all listed properties are “value for money” sorted via the algorithm taking into consideration available statistics. The work of calculating whether a property is good “value for money” - or not – at the set price has already been done. In the case of good value for money – it is even given a ranking of how good “value for money” the property really is.
The VFMRE algorithm works by taking into consideration all the features and inclusions of a property. Then, using up to date statistics, the algorithm makes a comparison with the asking price.
If the listing sale price is lower than the estimated sale price, then the algorithm will deem that property to be “good value for money”, and it will be approved for listing on the Value for Money Real Estate website.
The VFMRE gauge shows which properties are the most value for money. The gauge shows how that particular property is rated in comparison to the search results of the area. The higher the gauge indicates, more value for money. The gauge is a simple, fast, and easy to read at a glance.
Beneath the gauge is the ranking of the property out of the total number of “value for money” properties in the area searched.
“For something to be value for money, then it would be considered to be well worth the money paid for it.”
For a real estate property to be considered value for money it should reflect the above statement. That should be a simple rule to follow. However, the term ‘value for money’ is often confused with something simply being referred to as ‘cheap’ or ‘relatively inexpensive’. However, just because something may be cheap does not guarantee that it is good value for money, particularly within the real estate market.
A property may have a low asking price: This does not automatically make it good value for money. The property may be a low initial cost but what is included in the sale may still not quite be worth the asking price - as low as that may be. There may also be a very good reason for the low asking price that is not immediately obvious.
Alternatively, a property may have a high asking price: And it would be a reasonable assumption that a more expensive property may not be good ‘value for money’. Even though the property may be a higher initial cost, this does not rule out that the property may be good value for money. Upon closer inspection, it might reveal that it is in-fact very good value for money. The property may include many highly sort-after and value adding features or inclusions, and be worth much more than the initial asking price. It may also be that the house or dwelling’ on the property is well above the average for the area.
To really evaluate whether a property really is ‘value for money’ or not, all aspects and features need to be taken into consideration. An easy way is to enter in features and details about a property into the VFMRE application, this way the VFMRE algorithm can assess the property based on its own attributes and give an opinion about the property based on real facts.
There is always a price point that the seller and buyer will agree on, the seller may move the sale price down or the buyer may move the offer up. For the property sale to proceed, there is a middle ground on the sale price that both parties agree on.
This process can take a long time, particularly if the seller has a high sale price and a potential buyer has a low offer. It is possible for both parties to eventually come to an agreement, however the negotiation will take a long time.
It is also common for a negotiation to break down in a situation where neither party refuses to move. There could be any number of factors, with differences of opinion regarding the true value of a property often a major factor. This can be frustrating for all parties involved – seller, buyer & the agent. It wastes a lot of time and can potentially cause the seller to lose a sale to another interested party.
The sale is almost certainly doomed to failure from the outset if the sale price is not in proportion to the property. Perhaps the seller is overly optimistic or has been advised as to the listing sale price.
This leaves an educated buyer with a decision to make. The buyer either moves on to look at other properties or accepts the probability of a lengthy and uncertain negotiation based on real factors. Regardless, neither of these outcomes is ideal. In one outcome, the prospective buyer is lost altogether, while the other outcome is stressful, takes a lot of time and still is not guaranteed to finish in an agreed sale price and hence a sale.
This situation can be minimized with the help of a simple tool. Using the VFMRE tool, the details about the property can be entered in. Both the buyer and the seller can see a real, estimated value for money sale price based on real, current statistics.
If both buyer and seller can see all the inclusions and features and the same estimation, then negotiations start at the right price point.
If a seller agrees to the suggested VFM sale point with the agent, the sale should be completed in a very short amount of time – great for the seller. This in turn frees up the agent to move onto other sales, spending more time marketing new ‘for sale’ properties than negotiating the sale price between buyers and sellers. Directly leading to an increase in the number of properties sold per month.
Both the seller and the buyer will be aware of the VFM sale point, this makes the transaction more transparent. Increasing confidence levels for both the seller and the buyer that the agreed sale price is a fair and justified middle ground for both parties. The seller can move on quicker and the buyer has their purchased property in a shorter time. The closer the initial sale price is to the VFM point, the faster the sale should be.
Buyer confidence is increased by the fact that the sale price is based on real physical inclusions and features and backed up by real statistics.
Both buyer and seller need to approach the sale price point mark and the Value for Money Real Estate website helps that happen sooner.