One of the most important steps in selling a home is defining your asking price. There are multiple ways of doing free appraisals, both online and in person, in which a price range is obtained, that is, a minimum and a maximum value at which the home could be sold . But how can the owner choose the first sale price of his home?
In general, you could choose the price that is right in the middle, but there are some strategies that can help improve the profitability of the sale. From the financial and real estate comparator HelpMyCash.com they explain what they are.
Start at a slightly higher price to test the market
The strategy that real estate agents often use is to choose a price slightly higher than the average value estimated by appraisals . For example, if after making many valuations of the house it is concluded that its market price ranges between 150,000 and 200,000 euros, the logical thing would be to choose a starting price of 175,000 euros. However, “it is common to choose a slightly higher price to see how buyers respond,” they argue from HelpMyCash.
Continuing with the example, the house could be published at 190,000 euros. Subsequently, it should be evaluated whether visits or requests for information are received. If they are not received, this means that the price is very high compared to what the buyers are willing to pay and, therefore, the seller will be forced to lower the price gradually until the interest of buyers is awakened.
On the contrary, if some visits or requests for information are received, the price can be preserved because there is a probability of selling at that value. In this way, “the seller could obtain a higher return than he would have obtained if he published his home at 175,000 euros from the beginning,” they explain from the comparator.
Start at a lower price and gradually increase it
Another strategy that is often used is to choose a competitive starting price, that is, close to the medium or low values of the price range that is obtained after making one or more valuations of the home. Continuing with the previous example, the property could be published at 175,000 euros.
If in this way many visits or requests for information are received , the owner can try raising the price slightly and analyze if the buyers are still interested in the house. “The market price, ultimately, is what buyers are willing to pay for the property. By analyzing the value of the home in this way, homeowners can choose a more accurate price and obtain a better return,” they say The experts.
Adjust the price if you want to sell quickly
Now, all the strategies outlined above can be useful if you want to sell under normal conditions, that is, without haste, among other things. If the owner has an urge to sell, it is best to choose an adjusted starting price .
“Testing the market is interesting if you want to increase the profitability of the sale . But it can also generate a certain delay in closing the operation. Therefore, if an owner is in a hurry to sell, it is best to adjust the price from the beginning”, claim from HelpMyCash.
With all this, the experts make it clear that choosing the price of a home is a complex task. “The best way to do it is by consulting a real estate expert,” they conclude from the comparator. “However, knowing these strategies can help owners to have a more honest and transparent conversation with their agent when choosing the price of the property,” they add.
Peter Barzilai is a high school pitcher and college rower turned longtime World News journalist. Peter has also written for Buzz Feed and Huffington Post and many other major publications, Peter Loves everything about sports and loves to write on trending topics and he is WideWorldMag member since 2017.