Friday, January 24, 2014
Being a seller in the real estate market can be difficult given the stiff competition from other property sellers. With the growing demands in the real estate industry, many have gone into the buy-and-sell scheme as a real estate investment. The most effective way to attract potential buyers is through a good price point. Coming up with the right number to lure buyers in for a viewing and negotiations without selling yourself short is a delicate decision best handled with thorough research.
These are the things you need to know before you decide on your asking price:
If you’re selling your house through an agent, your sales agent may have the knowledge and expertise to know the running prices around the area. Ask about the general trend in current asking prices, as well as prices from a few months to a year ago. It’s also important to know at what prices properties are getting sold in your area. This will help you gauge and decide on an accurate running price for your property. If you prefer to be hands-on and sell your property without an agent or broker, read up on running prices online and in newspaper ads.
Existing structure and renovations
If there are existing structures in your property, you should also take these into consideration for your selling price. Old structures will have depreciated over time, so it is best to have an appraiser assess how much the house or structure is worth today. If there are more recent renovations on your property, this may give you the opportunity to ask for a higher price. Upgraded bathrooms and kitchens are solid upgrades that will be useful to most potential buyers, but more personal home improvements such as swimming pools or unique décor may not be as desirable.
Fair market value
The fair market value of your property does not necessarily have to be your asking price. The fair market value is usually the highest price a potential buyer may want to pay for your property, but the market is difficult to predict, even for industry professionals. You may want to consider strategic pricing by setting a price lower by one to three percent to the fair market value. This will help you cash in on your property faster and also make more money, especially if market prices are going down.
Another thing to consider is your personal needs for selling your property. If you need money or are financing a new home, you may have some financial goals for the sale of the property. Just be sure that your goal price is realistic according to market values. Your asking price will also depend on how fast you need to sell your property. Setting a lower price will get the property off your hands sooner. On the other hand, you can also wait for a buyer willing to pay a fair value for your property. These are personal requirements you need to weigh up and consider when setting your selling price.