Selling your property is an integral aspect of the daily deals going down in the real estate industry. But as with any market exchange, prospective buyers are actively trying to beat down your asking price. After a long time haggling, they can skip you and move on to a more willing seller. Whatever reason for selling your house, you have to ensure that your house has an optimal valuation possible and still leave you with a nice profit. To do that, you’ll have to follow these tips we prepared just for you.
Determining the market value of your property
The first step is usually to determine the value of your house. You can do this by researching the market value of its location. Generally, different neighborhoods attract different prices. So if you’re fortunate to have a property for sale in one of the ‘high brow’ areas, then you can expect a higher market valuation. The appraisal can be done by matching the comparable properties recently sold in your area. Of course, the type of building structure will also affect the results of the appraisal.
Next, consider the prevalent interest rates. Lower rates mean that buyers have a stronger purchasing power. This is most likely dependent on the state of the economy. If the economy is on a spiral, it will impact negatively on buyers’ pockets, limiting their ability to afford your property. Another factor determined by the state of the economy is the interplay of demand and supply in the real estate market. The principle that consumer goods with close substitutes will attract a lower price, applies here. If there are too many houses with similar settings as yours on the market, buyers can easily skip you and go for another.
Lastly, the current condition of your property will have a big say in estimating its value. How much curb appeal can your house generate at first glance? Does it badly need repairs? What popular features does it offer?
Other key factors that influence the selling price
After appraising the current market value of your property, the next thing is to understand the other key factors affecting your best selling price.
Buyers of real estate seem to believe that the longer a house is on the market, the lesser price it should demand. They place a higher value on brand new listings, thinking that if your house has spent too long in the market, it means there is probably something wrong with it. So it is generally recommended that you sell your house quickly to avoid occupying the market for a prolonged period. This can normally be determined by how flexible your terms of sale are. Do you need the cash so badly that you are only willing to accept one-time payments? Are you open to negotiating lower interest rates? If not, you may want to reconsider your stance.
Your agents play a very crucial role in how much you eventually get for your property. They can expedite the sale by aggressively marketing your property, but they can also charge you outrageous percentages. The key to choosing the right agents is to get quotations from more than just one. You can easily compare their valuations and decide which suits you better. After selecting the right agent, you have to maintain regular contact with them. Ask them for regular updates and situation reports. That’s what you’re paying them for.
And finally, you need to take necessary measures to ensure that your property is appealing. A Messy or smelly house is an immediate turn off to potential buyers. Declutter your house and invest in making it look desirable before setting a price.
Setting the best price
Now that you have a grasp on the pricing process, what is the ideal price you should tender? There are a couple of pricing strategies to help you decide.
A common approach is to employ the ‘Above the price’ strategy. This usually involves letting your prospective buyers know that you have limits when it comes to price, by stating that you will only consider offers above a fixed value. This generates more hype, because it attracts more buyers to your lower price, which will only cause the final selling price to rise since it cannot get any lower than your original ‘fixed price’’.
A second tactic, known as ‘The Wiggle Room Factor’, entails pricing your property a bit higher than its estimated market value since we are all likely to settle for a value below the actual asking price. This method gives wiggle room for negotiations. If there are less competing sellers, then you can confidently tighten the wiggle room knowing full well that buyers are more likely to give your property a second look. This can quite be a risk however because if you price it too high, buyers may skip over your property, extending the time your property will remain in the market. Eventually, you have to give in and widen the wiggle room just to get that property off your hands.
Another strategy suggests making sure that the price suits the current market trends; if the market is dull, present a lower price and if it is booming, instigate competition among your buyers by offering them a price close to your expected selling price. Then, you can simply go with the highest bidder.
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