How is real estate liquidity determined? Why are some apartments considered more liquid and others less so? Let’s explain briefly and clearly.
Liquidity is the property of an asset to be quickly sold at a market price. Simply put, the faster you can convert a house into money, the more liquid the property.
The most liquid apartments are those for which there is a high demand. The least liquid vehicle is a property that does not attract a buyer. Do you want to buy liquid real estate? Contact Sea Inside. We own the database of the most profitable properties in Tbilisi, Batumi and Gudauri.
One way to make illiquid housing more liquid is to lower the selling price below market value. This method can be resorted to when you need to urgently sell an apartment and get money for it.
This or that housing falls into the category of liquid, depends on how high the demand is on the market in a certain period of time. Liquidity is affected by many factors. Let’s list them.
City or village, resort or capital. Location affects not only the price of housing, but also its liquidity. It is easier to sell an apartment in the historical center of the city than in remote residential areas.
General condition and repair
For apartments with a new renovation in a new building, the demand is higher than for a secondary apartment in Khrushchev. A house with a fresh, clean finish is easier to sell than a house with similar conditions, but with an old renovation.
Number of storeys
The upper floors are considered more liquid, but if it attracts other indicators (for example, price), then there is a demand for the lower floors.
Ecological situation in the area
More and more people when choosing a house pay attention to the environment. Few people want large industries and factories in the neighborhood. A house located near the sea, a lake, a park or square will be easier to sell, therefore it is more liquid.
Good roads and well-developed road junctions provide convenient transportation and, therefore, make everyday life easier. A home that is easy to drive to will sell faster.
Presence/lack of developed infrastructure
A well-maintained house territory with playgrounds and lawns not only beautifies life, but also makes the property attractive in the eyes of buyers. The presence of supermarkets, entertainment centers, restaurants, schools, banks and pharmacies within walking distance increases the liquidity of the house.
Surprisingly, the number of square meters has no effect on liquidity. There is a demand for any area. Small studios will be chosen by couples, multi-room apartments will be preferred by families with many children.