How to Price Intelligently for Homeowners? • Kenneth Goh - Specialize in the sale and purchase of properties in Malaysia

How to Price Intelligently for Homeowners?

The biggest issue many homeowners face when listing their house for sale is the price. You want to get the most you can, but be careful when it comes to pricing it too high.

For no particular reason, you have picked up the itch to sell your house. Maybe there are developments in your area that have caused massive appreciation and you simply want to cash out while the going is good. Maybe you just are interested to see what someone will pay.

In making the decision to sell, you do the research to find out what comparable homes in the area are selling for and how long it takes them to sell. You decide to list your property at the top of the market because you have serious upgrades and the research shows comparable homes are moving pretty quickly. While you may be willing to wait a bit for an offer, you run a risk of sabotaging yourself. 

TIME

Time is a two way street in the real estate industry. While you are probably not particularly interested in waiting a long time to move the property, buyers are considering time as well. Specifically, they are wondering why so much time has passed since your home was first listed. Is it an indication that there is something wrong with the property?

Many potential buyers will start to think so. If you price the property at the top of the comparable market, you run this risk and selling becomes very difficult. 

RENOVATION

One justification many sellers make for picking a high price are renovation done to the property. In many scenarios, this is logical and makes practical sense. That being said, you may be in for a nasty surprise. Most buyers prefer to make the renovations themselves, not pay a premium for what you have done. Ultimately, this means the higher price may find little interest because the value of the renovations is ignored by the potential buyers. This can also lead to the frustrating situation wherein you realize you spent more money on renovations than you will ever get out of the property. Ouch. 

HIGH PRICE FROM START

The final risk associated with pricing your property at the top of the market is the potential it will be ignored. The general rule in real estate for buyers is to purchase the lowest priced home in an area and then fix it up. With minor changes, appreciation gains can be significant. If your home is already at the top of the market, a buyer really cannot do this and will actually have to wait for other properties in the area to appreciate. Savvy or even moderately knowledgeable buyers will not take the bait. 

Pricing your property for sale is a trick issue. Figure out your market and make your own conclusions. To maximize profit, it is best to be in the middle of the market, but always below other homes that are superior to your property.

STRUGGLIND TO DETERMINE SELLING PRICE OF YOUR PROPERTY?

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About the author

Kenneth Goh

My name is Kenneth Goh and author of this blog. This blog will share with you more about property knowledge, investment, internet marketing and technology. It is just about anything that is good to share. Do give your comment if you like or dislike this post and I will reply all of them. Thank You for your Visit. If you have any question, please feel free to contact me using contact form here.


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STRUGGLING TO DETERMINE SELLING PRICE OF YOUR PROPERTY? 

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