When selling your property, deciding on the right asking price can be intricate. Many face the challenge of finding a middle ground between an attractive offer for potential buyers and ensuring a decent profit margin. Before settling on a realistic and justifiable price, take into account various factors. The current uncertainties in the real estate market due to COVID-19 and the Movement Control Order amplify the complexity of this task. To establish a suitable asking price aligned with market conditions, follow these steps for a prompt and prosperous sale.
What Is an Asking Price?
Representing the seller’s desired sum, the asking price is open to negotiation. The final sale price is variable, allowing the property to be sold for more or less than the initial asking figure.
Why It’s Essential to Get Your Asking Price Right
Establish a reasonable asking price to attract potential buyers effectively. An excessively high price may divert buyers to more economical choices, leading to a prolonged market presence. Conversely, setting the price too low may undervalue your property, jeopardising potential profits. Aim for a balanced approach to secure a successful sale. METProperty.com is a platform where you can analyse real estate prices, recent sales, and market trends.
Considerations That Determine How the Asking Price Is Set
1) Property Variety
The type of property ownership significantly influences the realistic asking price. Freehold properties like Armani Residence KLCC, characterised by perpetual ownership, feature fewer constraints, facilitating financing and increasing attractiveness. Owners have the flexibility to make legal modifications to the land. On the other hand, leasehold properties, with limited ownership years, revert to the government after a predetermined period, like 30, 60, or 99 years in Malaysia. The length of the lease has a direct impact on property value, with longer leases associated with higher prices. Owners can request lease extensions before expiration.
2) Trends in Property Prices
Research recent sales of similar properties to determine a suitable asking price for your home. Aim for a price slightly above or below the average selling price, avoiding extremes for effective attraction of prospective buyers.
3) Type of Neighbourhood and Facilities
The asking price for a property in a prime location with nearby amenities or within a prestigious residential neighbourhood can be elevated. Prospective buyers are likely to express interest and be eager to invest in such attractive locations.
Precision in Pricing: Establishing the Ideal Asking Price for Your Property
1) Seek Expert Advice for Your Property
When the process of pricing your house becomes overwhelming or if you lack confidence, it’s wise to rely on experts. A trusted real estate agent can manage the intellectual heavy lifting, conducting research and trend evaluation for a well-informed pricing strategy.
2) Keep an Eye on the Evolution of the Property Market
Explore the market to grasp its dynamics. Ascertain whether it’s a buyer’s market, marked by an excess of homes for sale and lower prices, or a seller’s market, characterised by heightened buyer competition and higher prices. Time the listing of your house strategically based on market conditions.
When looking to sell your property quickly, determining the asking price becomes a primary concern. Familiarise yourself with all aspects influencing the asking price, or, for better outcomes, employ a proficient real estate professional.