The more responses and queries you get for your for-sale property, the more your bargaining power and chances to make a profit on the deal. But there is a catch-22 situation? Price the property high for profit and risk getting fewer responses. Price it too low in the hope of inviting more queries and it is a recipe for little-to-no profit. Add to it the unflinching desire of buyers for discount and you are staring into a loss-making deal. Besides, a price too low might make buyers skeptical about the legality and authenticity of the property – a scenario no seller ever wants.
So the million dollar question is how to price the property right? What are the factors to consider before reaching a price point? Should you hire a professional for the property evaluation or you can do it yourself with some assistance?
If your mind is buzzing with confusion, you are in the right place. This blog is going to help you avoid property pricing mistakes, find out how to price it right and discover ways to raise its value.
Consider the market rate and circle rate of your area
Put yourself in the shoes of the buyer and think how much you, or anyone else, is willing to spend on that property – now that is the market rate. The market rate is determined by the forces of supply and demand. It is the price at which the majority of buyers are ready to buy something and most of the sellers are ready to sell it.
The second thing is to think of Circle Rate. It is the price at which a property is registered with government agencies at the time of sale, purchase, and ownership transfer. It indicates the probable value of the property and most of the time it is lower than the actual value.
Do a comparative analysis of similar properties around
Is it an apartment in a high-rise or an independent house? A 2BHK or 3 BHK? Single-storey or multi-storey? Located in a posh location or in the suburbs? Size, Specification, Location, Connectivity, and types of land holding determine the price and value of a house. Compare the price of your property with one with similar specifications, location, size, connectivity, and land holding type to get a fair idea.
Factor in variables that affect prices
There are other variables like age and quality of your property – a well-kept and modern house will always attract more buyers and desirable prices. Does it have amenities such as lawns, clubs, gyms, play areas, swimming pools, 24*7 security, and so on? They do play a role in hiking the value and price of the property. The same can be said about how close are schools, colleges, shopping centers, hotels, and hospitals to the property. Buyers value such factors greatly and the closer your property is to these, the more price it can fetch.
Besides, spare a look at the realty market. If it’s on the upswing you can get more than you expect. On the contrary, a slowdown in the property market will compel you to sell at a loss or bide your time. Knowing the sentiments of the realty market can help you get the killer deal you always wanted.
Always add the discount amount to the quoted price
No matter who you end up selling the property to, the discount is considered an inalienable right by the buyer. You have to give it. So make sure you add the discount amount in advance to the actual price you want to get out of the deal.
Remember, buyers, are not emotionally attached to the property like you are!
It’s human to be swayed by emotions and get attached to the property you are selling – especially if it’s a house you have lived in. In such cases, we tend to value (and price) the property a whole lot more than it deserves. Always remember, buyers are not emotionally attached to the property like you are! And it’s nothing more than a callous investment for them. So price your property as per current market value to get a response from buyers.
Seek professional advice and evaluation if you may
It’s always a good idea to seek professional advice. They have their ears to the ground and know the property market inside out. They can price your property much better than you can. In addition, they might suggest ways to raise the value and desirability of the property with a few minor tweaks. Chances are you might end up raking in much more profit on the deal than the amount spent on the consultation charge and redevelopment.
Make it more appealing and buyer-friendly by doing minor redevelopment
Eyes are said to be the window to the soul, mind, and pocket. If you can please someone’s eyes, s/he might please you with the wallet. So make your property more appealing and desirable to the eyes. Paint it wow, do the necessary repair if needed, and make it clean, organized, and clutter-free. Add some greenery if you can or rev it up if it’s already present. You’ll be surprised to see how such minor adjustments can majorly raise the interest of buyers.
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