The 4 features of a good asking price
Published on October 4, 2019
Setting the right asking price is key to ensuring a successful transaction. First, the price has an impact on buyers’ interest in your property. And, second, if you’ve done your homework, this will make the job of negotiating a price with the buyer much easier.
So, to achieve success in selling your property, the asking price should…
1. Reflect its fair market value
A good asking price must be fair, meaning that it must reflect the property’s market value. This is determined by the price a buyer is prepared to pay for a given type of property, in a given area and in given market conditions.
Analyzing comparables is the method of choice used by experts to determine a property’s market value. And an appraiser is without a doubt the best expert to help you set your price. That’s why, with DuProprio, you can take advantage of help from appraisers.
Of course, all homeowners want to get the most from the sale of their property. But don’t forget that buyers are also looking for a good deal.
2. Be competitive on the market
Buyers are trying to get the most for their money. If they’re given the choice between two similar products, they’re likely to pick the least expensive option. So be sure to set a competitive price. If there are comparable homes for sale in your area, check how much is being asked for them.
3. Be realistic
It’s normal to keep a margin for negotiation. But it’s best to keep it fairly small so that the listed price is still realistic. Don’t make the mistake of asking for a price that’s too high. You might lose buyers looking for exactly your type of property.
Just remember that buyers also shop by price category. Those seeking a home of about $250,000 will start by considering properties listed at $225,000–$275,000, before even looking at more expensive ones.
4. Be objective
We know a house isn’t just a building: it’s a place in which you’ve spent enjoyable time and made lots of memories. But over-evaluating the worth of a house is a common error. That’s why it’s best to go into the selling process with a certain amount of detachment.
When you’re negotiating a selling price for your home with a potential buyer, stay focussed on tangible features, like having a garage, or a larger lot than your neighbours.
Keep in mind that if you view your home from a neutral position and set a price that’s attractive to buyers, your odds of selling will multiply.