The asking price of a property has a significant influence on whether the property finds a buyer, whether it is sold at a fair market price and how long the property remains for sale. To ensure that everything runs smoothly, real estate sellers should keep a few things in mind.
The asking price is not the same as the market value or the selling price. As the name suggests, it is the price at which you offer your property. The price at which the property is ultimately sold is another matter.
The selling price may be higher or lower than the asking price. To avoid mistakes and financial losses, it makes sense to seek advice from a local quality estate agent.
Analyzing the market
In order to set a promising asking price, it is essential to analyze the real estate market in detail. What is the situation regarding supply, demand and sales prices? Many owners believe that the supply can be estimated by looking at all the online real estate portals.
However, not all properties that are sold are also offered online. It is also difficult to determine how many people enquire about a property and at what price it is ultimately sold for without expertise. It should also be noted that the real estate market is in a constant state of flux.
Valuation of the property
The basis for a suitable asking price can only be a professional valuation. This takes into account aspects such as location, condition, features and individual characteristics of the property, including the current situation on the real estate market.
Pricing strategy
After the valuation, you know how much your property is worth. But you do not offer your property at this price. This is because no interested parties could respond to your offer or try to negotiate the price down.
It is therefore often a better strategy to offer your property at a lower price in order to increase demand. In the subsequent price negotiation, you can use the high demand for your property as a negotiating argument and the highest bidder will be awarded the contract.
Or you can go to the market with a higher asking price in order to have room for negotiation. However, this approach often has the disadvantage of reducing demand for your property. If no interested parties come forward at the beginning and you gradually lower the price, this gives observers the impression that something is wrong with the property. In the end, you may even have to sell below market value in order to find a buyer at all.
Conclusion
Finding out how high the asking price should be when selling a property is a challenge that most owners find difficult. That's why it makes sense to seek advice from a quality local estate agent. They will determine the value of your property free of charge and help you to find a suitable asking price and the right pricing strategy.
Would you like to sell your property at a fair market price? Get in touch with us! We will be happy to advise you.
Note
For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
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