Prices - Selling a House - What is a Good Offer Price?
the price that you are planning to offer buyers is probably
one of the most important decisions that you need to
make, while selling
your home. The offer price should be such that it
reflects the real value of your home. Overpricing your
offer is not recommended because buyers are usually
well informed and might have already visited other similar
properties in the neighborhood. After a few weeks, your
property listing is bound to lose appeal if it is overpriced.
In comparison, making an offer below the market price
will not pose a problem. Properties that are listed
below their market price can receive multiple offers
and this in turn affects the price.
past property listings:
determining the most appropriate offer price for your
home, you can start by looking at offer prices of other
properties in the neighborhood that have been listed
over the past six months. You need to select only those
that are located in the same street or locality. You
need to understand that even if there are similar properties
in the locality, their market prices often vary depending
on their proximity to main streets, motorways and railways.
You need to select only those properties that were more
or less built during the same time as your own home.
the offer price:
order to make the right offer, you need to compare property
listing price offers with the actual sale prices to
determine price reductions or increments. This way,
you can make similar adjustments to your offer price.
If your home has extra amenities or upgrades, you can
adjust your offer price accordingly. While studying
listings, try to ascertain the reasons as to why
some properties were sold at higher prices and why some
were sold at lower prices. This will help you in making
the required changes to your home, necessary for making
a high offer price.
for existing demand-supply situation:
going through past and present listings and determining
price, you need to make adjustments for the current
demand-supply scenario existing in the local property
market. For example, if your local property market is
witnessing a downtrend, you can lower your initial offer
price by three to four percent, to attract more buyers.
If the market is booming, you can increase your offer
price by 4 to 5 percent. In a balanced market, the offer
price should be more or less the same as the offer price
for similar properties in your neighborhood.
you want to sell your home at the most appropriate price,
you need to first visit properties
that are listed in your locality and note down the amenities
and convenience their location offers. In this way,
you will get a fair idea as to why some properties are
priced higher than others. You can then perform the
necessary renovations to your home to attract the right
kind of buyers for the property. Selling
your property should potentially then be easier
- The Consumers' Advocate.
Author: M. Reel