Setting the selling price is one of the most important decisions in the real estate sales process, as it can affect how quickly the property sells and how successful it is. Here are some important factors to consider when determining your selling price:
Market analysis
When determining the price, it is important to conduct a thorough market analysis. This involves researching similar real estate transactions in your area within the last year or two. See what similar properties have sold for or what they are currently priced at.
Property condition
The condition of the property has a significant impact on the sale price. If the property is in good condition and updated, you can usually ask for a higher price. If it needs repair or is outdated, the price may be lower.
Location
The location of the property is one of the most important evaluation factors. Popular and well-rated locations usually allow you to command a higher price.
Unique characteristics
If the property has unique features such as a large garden, views, a pool or other added value, this can affect the selling price.
State of the real estate market
The general state of the real estate market can affect the sale price. If the market has high demand and low supply, you can ask for a higher price. Other way round, if the market is oversupplied, the price may be lower.
Financial considerations
Also consider your financial needs. Will the sale price allow you to make enough profit or cover existing loans and expenses?
Costs related to sales
In addition to the sale price, costs related to the sale must be taken into account, such as brokerage fees/advertising costs, transaction costs, appraisal report, income tax/its declaration and other service fees. These costs can affect how much you end up receiving.
Room for negotiations
Note that buyers may try to haggle over the price, so leave yourself some room to negotiate. I personally start each sale with a price 5-15% higher than the real value. That way, the owner gets his share, I get my fee, and the trading room is left over.
Emotional value
Sometimes a property may have emotional value to you, but don’t let emotions affect the sale price too much.
Broker advice
If you use the services of a broker, take into account their advice and recommendations on the sale price, as they may have relevant experience and market insight. Ultimately, setting a sales price is about finding a balance between real estate market conditions, the characteristics of the property, and your own needs. It is advisable to consider various factors and, if necessary, consult real estate specialists in order to make an informed decision.
