If you’re thinking of selling your home, the price is the most important consideration. There’s no doubt that a lack of industry knowledge can lead to missed opportunities and, ultimately, less money. However, you also don’t want to set the price too high so that prospective buyers turn away. You need to strike the right balance. This guide to pricing a property correctly covers everything from assessing the competition to estimating the average price per square foot in similar areas.
Tips for pricing your home for sale
Here are a few tips on home pricing strategies, based on local market conditions, listings, and more.
Determine your goals
Would you rather sell your property fast or wait for the highest offer? The answers to questions like these will help you determine whether you are pricing a property correctly. Also, it will prevent you from falling victim to the pitfalls of pricing your home for sale.
If you lowball the price for a quick sale, you may be forced to accept an offer below what the property is actually worth. On the other hand, if you wish to get the highest offer for your property, you will risk having it sit on the market too long as buyers consider other, cheaper options.
If you want to sell quickly without making major compromises, set a price that will attract buyers quickly. The right price may even start a bidding war that will drive up the overall sale price.
Consult an experienced real estate agent
Professional agents have a great combination of industry experience and invaluable knowledge. Your agent will listen to your needs, take your research into account, and use their knowledge of the local market conditions to determine the best asking price. In addition, they will become more familiar with the complexities of property sales in the UAE and the related documents, such as RERA forms.
Hire the services of a reputable real estate agency. The company will assign you an agent who specializes and has experience in evaluating properties that are similar to yours. In addition, they will compare your home’s value with homes recently sold in the same neighborhood.
What is the value of your property? Different agents may quote different values. You can perform your due diligence by researching multiple agencies and choosing one that has a strong track record. That way, you know that you are getting good advice.
Do a comparative market analysis
When determining your asking price, an experienced real estate agent will take into account factors that you might not have thought about, such as other comparable properties in the area. These factors may include age, condition, square footage, and upgrades.
Suppose you know that a homeowner in the area who has a similar floor plan to yours sold his property for more than the actual market value. You may not be aware of upgrades that the property owner has made, such as an extra bathroom or a newly remodeled kitchen. You can determine an appropriate price for your own property by considering upgrades and other valuable factors.
It’s also a good idea to compare the price of similar square footage properties in similar areas.
Understand the market
In order to price your property correctly, you need to consider the local housing market. When the demand for homes exceeds the number of homes for sale, you can price your property slightly higher in a seller’s market. If, however, you find yourself in a seller’s market where demand is lower and sellers have a clear advantage, things may change drastically. You may need to price your property a little below its value in order to pique interest.
Look at the competition with current listings
Set your home’s price based on the prices of active listings. You don’t want to set a price that’s too low or too high compared with what your property is actually worth.
Tour active listings homes
Actively listed homes do not always tell the whole story. When it comes to setting a price for your own property, you should look at what your competitors are actually offering. These active-listed properties can be toured by you or your agent to get an idea. So you can see what your own home will look like when you are selling it.
You can get a general idea of what appeals to you about similar active-listed properties by taking a personal tour. Additionally, it will help you determine why prospective investors or buyers may prefer these homes to your own. Adjust the price of your own home-based on what you can do to make a better impression.
Leave a bit of room for negotiation
Emotional attachment may make you hesitant to reduce the price of your property, especially if it has many memories attached to it; however, this may come back to bite you if you have overpriced it. Keep the asking price under the current buyer’s expectations and leave a little room for negotiation. Taking this approach can result in a win-win situation for you and the buyer.