House Prices - Selling a House - What is a Good Offer Price?

Determining 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.

Compare past property listings:

For 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 properties 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.

Adjust the offer price:

In 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 past property 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.

Adjust for existing demand-supply situation:

After going through past and present listings and determining an offer 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.

If 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 thereafter.

Honest Johnny - The Consumers' Advocate.

Article Author: M. Reel