Real Estate – Talk #2: Market Trends and Digitalization
FINDMYHOME.AT / Premium Living in the interview with Mr. Mag. Buxbaum of OTTO IMMOBILIEN.
How does the trend compare between single-family homes and apartments?
Villas and houses have developed more strongly than apartments, as demand for this type of property in particular has risen even more sharply and supply has fallen significantly.
Real estate prices are high, interest rates are low. Should you buy now and take advantage of the low interest rates, or wait until interest rates rise again, causing property prices to fall?
From my own experience – I just bought an apartment – I recommend taking advantage of the favorable interest rate environment and investing now. Of course, the apartment must also fit, but in any case, you should be willing to invest. It is not yet possible to forecast whether and when real estate prices will actually fall significantly. It will also depend a lot on the different locations in Vienna.
Is the bidding process a serious future model for winning the bid as the best bidder for sought-after properties?
Especially for apartment buildings, but also for villas, houses and land, the structured, professionally conducted bidding process will continue to be a very popular and also ideal marketing tool in the future.
As a real estate agent, is it necessary to specialize in regions or certain segments?
To be successful as a broker you have to know your market best. It then depends on the size of the company whether you can and should focus on several areas or just a few.
When the “Bestellerprinzip” comes into force, brokers will have to turn into 360° providers and thus, for example. Take on appraisal, floor plan, marketing, homestaging, legal/financial advice?
Brokers must be aware of their qualities and services and also compile their range of offers accordingly, which must be regularly analyzed and further developed.
How is a property valued and how is its value divided?
The valuation of a property is very individual. Here, the floor plan of an apartment plays a very important role, usually well over 50% of the value of the property, all other things being equal, floor location and condition. By this is meant how well can I use the property efficiently and wisely. Will I reach the target audience that is also looking for such a property? The market value of a property is usually determined on the basis of comparative values, where location, floor location, condition, orientation, open space, etc. is just comparable, and then the previously mentioned individual parameters must still be taken into account.
How does homestaging affect sales price and marketing speed?
Since with a residential property the emotion must always be addressed in the marketing, quality, appropriate home staging or at least digital staging is certainly very helpful to make prospective buyers aware of the property and then also to win them over for it.
How much is digitalization influencing the real estate industry?
I see mainly positive influences here. The pandemic has given digitization a major boost, and many things that seemed almost impossible before are now part of everyday life for many brokers.
There are now rating platforms, mediation portals and code access to independent inspections – Will the broker be replaced sooner or later?
It replaces the broker who remains in old structures and wants to resist developments and digitalization. It is important to take advantage of digitization and use it in the best possible way to support them. Valuation is not everything when selling a property and even with this many are also very far off the mark. Any serious assessment needs so many individual components that can only be inadequately mapped via platforms. In addition, it is then also a question of marketing to achieve the optimum purchase price.
What makes the broker irreplaceable, despite digitalization?
The broker is a human being just as the parties to a real estate transaction are guided by human feelings and emotions in making their decisions. The broker remains the personal, human element in any real estate transaction. Away from the intermediary, towards the advisor, who can be trusted for such essential decisions based on his experience and market expertise. In the future, the broker will also be much more the expert who knows and can use the optimal sales channels at home and abroad.
How is tradition and the personal not lost?
Every brokerage company must be aware of its values, actively live them and carry them to the outside world, then the personal culture of the company and its philosophy will also remain.
Thank you very much for your time and expertise Mr. Buxbaum!
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