We are often asked ‘How much is my property worth?’. If you own Real Estate in Cayman it is highly recommended that you are aware of market trends and forces, and what your property in Cayman is currently valued at.
Market Value is internationally recognized as:
“The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”
The Cayman Islands real estate market is relatively small and often it’s difficult to put a price on something that has no recent comparable sales. Milestone Properties Cayman have the advantage of using both the Cayman Islands Land Information System, that RICS valuer’s will utilise, and also CIREBA’s MLS system that also records in far greater detail the intrinsic values of a property, how long it has been on the Cayman real estate market, and what the original listing price was.
Ultimately, the market value of your property is what someone is willing to pay for it, though it is important to have a realistic starting point! Milestone Properties understand that as a vendor you want to achieve the highest possible selling price for your property, however setting an unrealistic price is counterproductive and will only serve to deter potential buyers. We will do our best to highlight the most valuable assets of your property with a pricing strategy, and presented in the best possible way will likely add value.
In order to determine the Market Value of your property Milestones agents will primarily, along with their in depth understanding and knowledge of Cayman’s real estate market trends, consider the following influences on Value;
Location, Location, Location – the most prevalent factor in determining the price of a property in the Cayman Islands is where it’s at, plus the views that accompany it. Beachfront, water front, and canal fronting properties tend to command the highest real estate prices in Cayman. South Sound, Old Prospect Point, Grand Harbour and the Seven Mile Beach Corridor developments of Canal Point, Crystal Harbour, Yacht Club, Vista Del Mar and Governors Harbour continue to be in the highest demand and thus sustain the highest of property values, as does Rum Point and Cayman Kai. Seven Mile Beach fronting properties certainly command a premium, as do properties on Grand Cayman over Cayman Brac and Little Cayman. It is also important to keep in mind that property values on Seven Mile Beach and some areas of South Sound are calculated on a price per linear foot rather than sq ft.
The Condition and Quality of a property has an indisputable effect on both the potential sale price of a home, and also the speed at which that property will sell on the open market. Architectural style, configuration of accommodation offered, quality of the fixtures and fittings along with the quality of workmanship, unique features your home may offer, and of course market conditions at the time of marketing will also have a direct bearing on price and speed of sale. As with any real estate in the Caribbean region, storm rating matters – build quality and hurricane proofing add tremendous value.
Market Competition – determining the comparable properties that are presently on the market, against which your home will be directly competing for potential purchasers, and establishing how long these properties have been on the market will also help in establish your desired selling price and time frame. Where there may be a considerable stock, or a scarcity, of available units this may well prohibit, or conversely facilitate, your ideal sales price enabling you to make an informed decision as to whether to Market your home at that time.
The Timing of your proposed sale will also have a great bearing on time on market and sale/asking price. For instance, traditionally the peak market for Seven Mile Beach condos, as well as ocean front homes in all locations is centered around the peak of the tourism season between December and May when the most potential overseas purchasers are on the island. Demand in other markets primarily driven by residents of the island, such as canal front and inland homes and condominiums, generally remain steady throughout the year with a healthy turnover of property on the market.
As mentioned previously, it’s essentially the state of the Cayman property market place that will determine sale price of any property; Supply – the amount of available property types and of course Demand – number of purchasers in the market looking for a specific type of property at any given time, and factors such as market confidence and the ability of persons to source satisfactory financing will have a direct effect. Milestone as professional real estate agents will use our experience to assess the market conditions, and all the comparable sales data available to us on the LIS and MLS, to determine the level at which we expect your property to transfer however the true test of any identified value is how it is received on the open market!