Real estate market analysis: What it is & How to do it

Using a tool called real estate market analysis, we can, for example, determine whether we should invest in real estate or the rental potential of a city or neighborhood. In fact, it would be crazy to buy a property without having the data to support an acquisition of this size.

Statistical research is the initial step that every financial backer should take before entering the market. The aim is to ensure the viability of the project and compatibility with the existing market.

What is real estate market analysis?

A real estate market analysis, also called a comparative market analysis, focuses on the current market values ​​of properties that are similar to the one you want to buy or sell.

Whether you are buying or selling a home, you should always do a real estate market analysis as it will help you find out what market you are currently in, how much similar homes cost, how much you can charge for rent, etc.

The reports are created by real estate agent to assist buyers in making competitive offers and to assist sellers in setting list prices for their homes.

How to conduct a real estate market analysis

An organized and structured approach is required when conducting real estate market research. You can segment your analysis along these four axes to achieve this: market, supply, demand and environment, and then you need to ask the right questions.

The goal is obvious: to explore the market potential and approve the business feasibility of your assignment.

Step 1: Study the market and its development

As a first step, it is essential to have knowledge of the global market. The goal is to further develop information in this area: market volume, patterns, reasonable progress.

When analyzing the market and its likely development, consider the following list of questions:

  • How much is the market worth? Specifically in terms of sales, customers and turnover?
  • How is the market now?
  • What are his chances for the future? The market can develop or deteriorate.
  • What are the current market trends?
  • What goods and services are currently on the market?

Who are your competitors, either directly or indirectly? What are their offers? What are the similarities and differences between the products and services you offer and those offered by your competitors?

What are your offers?

Who are my possible providers and what contracts can they offer me at any time? By answering these questions, you will be able to learn more about the market and its players.

We prescribe you to actually take a look at this direct market assessment guide.


Step 2: Focus on the interest

By focusing on interest, the goal is to get to know clients on the lookout and assess if there is potential that can be tapped into. When conducting your real estate market research, consider the following list of questions:

What is the number of clients in this market?

How is this number changing—is it increasing, decreasing, or staying the same?

  • Who exactly are these real estate clients? Where can I find them?
  • What is the customer consumption rate? What they do?
  • What are the buyer’s decision rules? How much do they spend? What are the important focuses from the point of view of the purchase trigger?

Step 3: Review the agreement

Proposition research involves exhaustively focusing on what your competitors are currently offering. Here is an illustration of an outline of questions to think about a proposal:

  • Who are the opponents to watch out for?
  • Which companies have the largest market share?
  • What is the size of the main contenders? How do they choose their places and where are they located?
  • How long have they been around and how much money do they have?
  • What models do a few competitors use to succeed better than others?

You can identify opportunities to prepare your future offers and gain a competitive advantage by conducting in-depth research into your competitors’ offers.

Through housing market research, you’ll have a better understanding of what works, the ground rules for progress, and in addition, what didn’t.

Step 4: Environmental and Legal Study

An environmental analysis study focuses on things that could affect the market, such as current laws, new technology, or anything else that could have an effect.

Here is an illustration of an overview of questions to ask when focusing on climate:

  • What news has an impact on the market?
  • What is the administrative structure governing the market?
  • Are there any laws that are unique to this market?
  • What are the latest developments in legislation?

Are there expert gatherings or different entertainers that act or influence the market?

Step 5: Data Collection Process

The data collection process is one of the most important steps in conducting real estate market research because it allows you to gather information that will help you determine whether the project is viable and whether your investment is safe.

With QuestionPro, conducting field research to gather the necessary data is simple. Our Offline app allows you to take surveys on your mobile devices and download results when you have a Wi-Fi connection – it doesn’t matter if you don’t have internet.

Start gathering the data you need to secure your investment in the real estate market by conducting real estate surveys.

Step 6: Reporting the results

Investors will be able to perform the analysis and select the most effective strategies to protect the investment if a report containing the obtained information is presented.

You can pre-analyze information and prepare a report highlighting what’s relevant for stakeholders to visualize and make better decisions using the real-time visualization feature of our survey software.

Make the right decisions with the help of data to excel in the real estate industry!

If you are thinking about conducting a statistical housing survey, we can help you.

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