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Pareto's rule in real estate. Invisible laws of the market.

Добавлена: 18.10.2015   Количество просмотров: 2423

Pareto's rule in real estate. Invisible laws of the market.

Vilfredo Pareto in 1897, the economist and the sociologist formulated one of laws most known now which says: 80% of result are reached 20% of efforts, or more popular and bright example – 20% of the population of our planet own 80% of resources (finance, not Wad Dra, the power and so forth). We will note that the modern economic science closely intertwined with sociology, laws of financial and cash flows are studied, written works, articles and new conclusions are issued. Some researchers are inclined to blunder to a ratio 90 to 10%.

From words to business … The Rostov housing market and commercial real estate endures the next crisis. We will dare to call it not economic, but moral. There is a lot of examples that it is simpler to go from the return. However, the overall picture of supply and demand speaks about a stable pent-up demand.

It is about readiness to put the savings in real estate which is always actual. Why this word? Perhaps, it describes modern mood of the average buyer in different segments. Everyone asks such question to itself(himself) before decision-making. In other words, one my client told the truthful phrase long ago – "To me it and free of charge it isn't necessary". Thus there are always objects which represent 100% stable interest for most of buyers, removing cost from the forefront, certainly, not on the last. Example in commercial real estate we will take rooms in foot boulevards with high windows, beautiful architecture, big entrance group, with possibility of outdoor advertizing. In dormitory areas we speak about existence of the parking, a safe arrangement, location on "a national track", proximity to stops and the markets. During the twenty-year period we faced an avalanche of the new, translated from apartments rooms, extensions, superstructures and so forth. Everything grew, the credits undertook, activity was built as "people eats", and with people was sated and passed into shopping center, with the wide range of requirements which can be satisfied there. Moreover there is more global and serious tendency of irreversible leaving of trade in "online". Literally in one year the city was filled with extensions I "hand over" and I "sell".

Pareto's rule was shown in full beauty. 80% of real estate ceased to be of interest to those 20% of the buyers and tenants potentially ready to buy or rent it and the main thing having for this means.

In other words 20% of real estate continue to represent the instrument of investments and a reliable way of preservation of money. To define such objects in forces or intuition, or the realtor expert ready to conduct transparent dialogue of price policy both with the buyer, and with the seller. The key problem of today's market is covered in misunderstanding of a difference between "price" and "cost". 

Timely and pertinent sale always brings in in the long term the bigger income and satisfaction for the seller, than long months or years of useless displays at inflated price in hope that the market will all the same be leveled and the object will be sold at the desirable price.
Supervision for record:
1. When the decision on property sale is made and there is its placement in the market, surely right at the beginning it gets to those 20%, and during the first 30-60 days actively enjoys popularity among buyers and their realtors. If the mistake in the price is made, quickly enough the object passes into category of "illiquid asset" with permanently falling reputation from category – "And why so long you sell? Likely something not so, time still wasn't bought?". Irony that you won't argue.
2. The market already passes inherently to the personalized rendering realtor service, and in a case with the address for the purpose of sale – even without placement in mass media there are high chances in short terms to sell the real estate.
3. The Internet sources and neighbors as a rule are mistaken in the price at least for 10-12% towards overestimate, in some cases from life to 70%. We suggest to count:
Conditionally real project cost of 5.000.000 rubles, sale at the price 5.600-6.000, and even 7. will lead only to one result – the transaction will be all the same signed not earlier than in a year and more at the price 5 and below, will all nervous cages are spent, there will be a disappointment and everything that with it usually goes in a set.

Work and sale in the adequate price will lead at once to signing of the contract of purchase and sale within 30-90 days at the price not lower than 5.000 as it real and heavy to argue with it (pay attention that the price starts working for the seller, a pier same actually and objectively, and the main thing liquid purchase).

Focus of today's realities is that if you the citizen who understands real estate at the level of the inhabitant, you, with quiet soul and the world go to any serious bank, or better even a little and you put the savings under 10-12% per annum that in 12 months will make you 500-600 thousand richer. The real estate in Russia will hardly develop according to the scenario of the USA in the different periods of formation. Growth of the competition under all laws of the market leads to falling of cost of goods, it is normal process. The main thing more often to ask the correct questions: "Why it has to be more expensive?", "Why my not new has to be more expensive new and more modern?", "Why in general the real estate has to rise in price constantly?". These are the difficult questions demanding and assuming ambiguous answers. It is heavy to disagree that time flies very quickly and all life over the years rushes with velocity of light. Whether it is worth spending it for empty meetings, deceiving, first of all itself and those who is brought to you by destiny. On this, let also lyrical, perhaps even to a melancholic note allow to take the leave.

The opinion was expressed by the specialist of the market of commercial real estate Ivan Butenko