Price is a key factor in every property sale. In almost every case price is the factor that comes under the greatest scrutiny during the buying process.
Occasionally there is a buyer who has the capability and the motivation to pay a premium price for the property they really want but these buyers only represent a small percentage of the market.
Deciding on the most suitable asking price for a property can be difficult. Buyers are looking for all types of real estate and their readiness to purchase, once they are assured of finance, is based to a large extent on the asking price. How to arrive at that price of what for most people is their largest asset should not be a case of trial and error.
Some people decide to ask a higher price on the basis that the price can always be moved down during negotiations, but it is impossible to raise it. However, a price which is obviously too high can kill interest right from the start, leaving a property to languish on the market, and attract negative response from potential buyers who may wonder if the property has a defect even.
Pricing is a complex exercise, and if overpriced, a property may sit on the market longer, in the end even selling for less than what the vendor may have obtained had the property been priced “right” when it was first offered for sale.
If you wish to make a reasonably quick sale, then the asking price should be close enough to the true value to allow it to sell if not at once, then to attract sufficient interest to give early prospective buyers something on which to base a possible compromise.
The ultimate price is based on several considerations, such as situation, size, age, condition, amenities, presentation of both the interior and the surroundings, and of course the activity in the current market.
Buyers are being selective, and they compare prices to be able to gauge ‘value’ to them. They also tend to look at more properties and take more time to make a decision. The property they eventually decide on will be the one that provides them with most of their requirements at a price they perceive to be fair market value.
It pays to ask your consultant for an appraisal, as owners are not always a good judge of a property’s value. Some can be over-optimistic, while others pessimistic. The need to recognise this cannot be over-emphasised.
Your consultant has current information about prices and property sold in the area. By experience, they know approximately how much each house will bring from the right type of buyer. If prices are set in accord with the current market conditions for the area, then properties have a good chance of attracting an enthusiastic buyer.
If you are selling, and setting the right price is important to you, talk to your Next Vision Real Estate professional.
SETTING THE RIGHT PRICE