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How to set the right price when selling a home: the most common mistakes and the keys to avoiding them - Infobae
Source:
https://www.infobae.com/economia/20...-errores-mas-comunes-y-claves-para-evitarlos/
October 07, 2024
Knowing the factors that define your value and avoiding asking for too much is essential to not extending the offer beyond 12 months. What market experts say
By Jose Luis Cieri
A real estate agent and a couple walk through a property. Setting a suitable price requires a thorough analysis of the market and the characteristics of a property. It should be noted that an attractive price generates interest and visits to the property (Illustrative Image Infobae)
In a real estate market that is beginning to show signs of recovery after more than five years of crisis, setting the right price to sell a property is essential to complete a successful transaction. In the Autonomous City of Buenos Aires, transactions grew by 28.1% in August compared to the same month of the previous year, and for the first time since May 2018, almost 5,300 deeds were registered in one month , according to data from the Buenos Aires Notary Association.
This boost, as in other markets in the country, together with mortgage loans and the money laundering extended until October, generated good expectations that confirm the reversal of the negative trend.
For those who want to sell their property, it is essential to consider factors that can speed up the transaction. A common mistake is to set the price too high.
Santiago Magnin , from Deinmobiliarios and an expert in Real Estate, told Infobae that “when setting the price of a property through comparisons, it is essential to follow two previous steps: carry out a detailed inspection of the property and carry out a market analysis. It is essential to communicate to the owner that their house will only be sold if it has a competitive price and is backed by an accurate appraisal.”
Property pricing is the process of determining the approximate selling value of a property, taking into account factors such as location, size, physical characteristics, condition and market conditions.
While the appraisal is only an estimate, it may vary depending on the market.
However, it is important to clarify that a competitive price does not mean “cheap.” A professional real estate agent usually applies all available tools to obtain the highest possible value that the market can consolidate.
Diego Migliorisi , from Migliorisi Properties, emphasizes the importance of location, especially in established areas, although he clarifies that it is not always the determining factor.
In order to achieve an accurate appraisal, it is essential to adjust the value of the property based on the differences found with comparable properties. If, for example, a similar property has one more room, adjustments must be made to the value to reflect this disparity.
The views also tend to attract those who decide to buy high up (Illustrative Image Infobae)
Ariel Champanier , from Remax Premium, told Infobae : “It is better to set the price as close as possible to the closing value and negotiate little or nothing. This strategy facilitates the sale and avoids unnecessary delays.”
Graciela Muradas , manager of Toribio Achával's Palermo platform, commented on the importance of these aspects: “The condition of a property can be decisive when determining its price. A home with good materials and maintained in optimal conditions generates more interest and facilitates the sale. It is essential to invest in details that add value, such as bathroom and kitchen updates, or a more functional layout.”
Furthermore, fluctuations in the real estate market also play an important role in the valuation of properties. “If there is high demand and low supply, values tend to rise, while a market with greater economic stability and accessible credit lines favors the purchase of properties,” Muradas added.
However, with the market recovering, this situation has changed and negotiations are limited, with firmer prices and less flexibility to negotiate.
Diego Migliorisi stressed the importance of a detailed analysis in each case: “It is a question of expectations. In a fluctuating market, it is crucial to assess whether a value is out of the market. To sell at the best possible price, it is necessary to follow a structured process that reaches the entire active portfolio. An error in this process can cause the owner to lose a lot of money if he accepts offers without applying these strategies.”
Setting a realistic sale price is essential for a quick and successful transaction. By avoiding overpricing a property, you will attract genuinely interested buyers (Illustrative Image Infobae)
Some owners overvalue their properties due to optimism or lack of knowledge of the market, which generates unrealistic expectations and slows down the sale.
Muradas stressed: “Overpricing a property decreases buyer interest and reduces the number of visits, which prolongs the property’s stay on the market. In addition, the longer it remains unsold, the more difficult it will be to maintain its attractiveness.”
“Doing a thorough market analysis and consulting the real estate agents who showed the property provides valuable information. Gradual price reductions, justified by market conditions, along with a revamped marketing strategy, such as updating photos and highlighting strong points, can revive interest and speed up the sale,” added Graciela Muradas.
There is no single market value; closing prices vary within a range. If the price exceeds this limit, it must be justified with technical reasons.
“It is crucial not only to avoid overpricing a property, but also to protect against falling below the floor of the value range. A price that is too low can mean a considerable loss for the owner, and this is where professional advice makes the difference,” advised Migliorisi.
Negotiating the price of a home requires balance and knowledge. The market value is usually a flexible range, allowing some room to reach an agreement (Illustrative Image Infobae)
The extent to which it is possible to negotiate the sale price of a home depends largely on how the property is valued in relation to the market. Currently, the negotiation margin for well-valued properties is very small, ranging from 0% to 5%; this reflects the fact that when a home is priced in line with the reality of the market, the chances of significantly moving the value in the negotiation are slim.
Ariel Champanier highlighted that one of the most common mistakes made by owners is setting a price above the market value. “We always believe that our property is worth more than it really is. Setting a high price is a very bad decision, since it loses the effect of the first few weeks, when a new property on the market has more visibility. A property that remains unsold for a long time tends to burn out , affecting its attractiveness to buyers,” he explains.
If a property has been on the market for more than a year, Champanier advised temporarily removing it. “A property that has been on the market for so long is likely overpriced or has not been managed properly. It is important to rethink its visual presentation and valuation to recapture the interest of buyers.”
www.buysellba.com
Source:
https://www.infobae.com/economia/20...-errores-mas-comunes-y-claves-para-evitarlos/
October 07, 2024
Knowing the factors that define your value and avoiding asking for too much is essential to not extending the offer beyond 12 months. What market experts say
By Jose Luis Cieri
A real estate agent and a couple walk through a property. Setting a suitable price requires a thorough analysis of the market and the characteristics of a property. It should be noted that an attractive price generates interest and visits to the property (Illustrative Image Infobae)
In a real estate market that is beginning to show signs of recovery after more than five years of crisis, setting the right price to sell a property is essential to complete a successful transaction. In the Autonomous City of Buenos Aires, transactions grew by 28.1% in August compared to the same month of the previous year, and for the first time since May 2018, almost 5,300 deeds were registered in one month , according to data from the Buenos Aires Notary Association.
This boost, as in other markets in the country, together with mortgage loans and the money laundering extended until October, generated good expectations that confirm the reversal of the negative trend.
For those who want to sell their property, it is essential to consider factors that can speed up the transaction. A common mistake is to set the price too high.
Santiago Magnin , from Deinmobiliarios and an expert in Real Estate, told Infobae that “when setting the price of a property through comparisons, it is essential to follow two previous steps: carry out a detailed inspection of the property and carry out a market analysis. It is essential to communicate to the owner that their house will only be sold if it has a competitive price and is backed by an accurate appraisal.”
Property pricing is the process of determining the approximate selling value of a property, taking into account factors such as location, size, physical characteristics, condition and market conditions.
While the appraisal is only an estimate, it may vary depending on the market.
Conditions
The appraisal of a property is not based solely on isolated data, but on a thorough analysis that considers multiple factors. For example, the neighborhood significantly influences the value of a property.- Services: proximity to schools, hospitals, public transport, shopping centres and green areas also have an impact. And security, the perception of security in an area can increase or decrease the value.
However, it is important to clarify that a competitive price does not mean “cheap.” A professional real estate agent usually applies all available tools to obtain the highest possible value that the market can consolidate.
Diego Migliorisi , from Migliorisi Properties, emphasizes the importance of location, especially in established areas, although he clarifies that it is not always the determining factor.
- “Location is always important, but fashions and trends do not influence a decision as important as buying a property. A good market analysis and the correct application of strategies allow you to maximize the price without depending solely on the location,” Migliorisi stressed.
In order to achieve an accurate appraisal, it is essential to adjust the value of the property based on the differences found with comparable properties. If, for example, a similar property has one more room, adjustments must be made to the value to reflect this disparity.
The views also tend to attract those who decide to buy high up (Illustrative Image Infobae)
Ariel Champanier , from Remax Premium, told Infobae : “It is better to set the price as close as possible to the closing value and negotiate little or nothing. This strategy facilitates the sale and avoids unnecessary delays.”
- The state of preservation of the property is a determining factor in its valuation. Well-maintained and updated properties attract more interest and allow for a higher price to be set.
- Renovations, especially if they are in line with current trends, can significantly increase the value of a property. A modern and functional layout is also highly valued by buyers, as is the quality of the materials used in construction and finishes, which contribute to a greater perception of quality.
Graciela Muradas , manager of Toribio Achával's Palermo platform, commented on the importance of these aspects: “The condition of a property can be decisive when determining its price. A home with good materials and maintained in optimal conditions generates more interest and facilitates the sale. It is essential to invest in details that add value, such as bathroom and kitchen updates, or a more functional layout.”
Furthermore, fluctuations in the real estate market also play an important role in the valuation of properties. “If there is high demand and low supply, values tend to rise, while a market with greater economic stability and accessible credit lines favors the purchase of properties,” Muradas added.
Market characteristics
Each real estate negotiation is unique and is determined by the supply and demand of the moment. In times when there was more supply than demand, counteroffers tended to be broader, allowing for greater room for negotiation.However, with the market recovering, this situation has changed and negotiations are limited, with firmer prices and less flexibility to negotiate.
Diego Migliorisi stressed the importance of a detailed analysis in each case: “It is a question of expectations. In a fluctuating market, it is crucial to assess whether a value is out of the market. To sell at the best possible price, it is necessary to follow a structured process that reaches the entire active portfolio. An error in this process can cause the owner to lose a lot of money if he accepts offers without applying these strategies.”
Setting a realistic sale price is essential for a quick and successful transaction. By avoiding overpricing a property, you will attract genuinely interested buyers (Illustrative Image Infobae)
Some owners overvalue their properties due to optimism or lack of knowledge of the market, which generates unrealistic expectations and slows down the sale.
Muradas stressed: “Overpricing a property decreases buyer interest and reduces the number of visits, which prolongs the property’s stay on the market. In addition, the longer it remains unsold, the more difficult it will be to maintain its attractiveness.”
Moment of adjustment
When a property has been on the market for more than 12 months without selling, it is essential to strategically adjust its price.“Doing a thorough market analysis and consulting the real estate agents who showed the property provides valuable information. Gradual price reductions, justified by market conditions, along with a revamped marketing strategy, such as updating photos and highlighting strong points, can revive interest and speed up the sale,” added Graciela Muradas.
There is no single market value; closing prices vary within a range. If the price exceeds this limit, it must be justified with technical reasons.
“It is crucial not only to avoid overpricing a property, but also to protect against falling below the floor of the value range. A price that is too low can mean a considerable loss for the owner, and this is where professional advice makes the difference,” advised Migliorisi.
Negotiating the price of a home requires balance and knowledge. The market value is usually a flexible range, allowing some room to reach an agreement (Illustrative Image Infobae)
The extent to which it is possible to negotiate the sale price of a home depends largely on how the property is valued in relation to the market. Currently, the negotiation margin for well-valued properties is very small, ranging from 0% to 5%; this reflects the fact that when a home is priced in line with the reality of the market, the chances of significantly moving the value in the negotiation are slim.
Ariel Champanier highlighted that one of the most common mistakes made by owners is setting a price above the market value. “We always believe that our property is worth more than it really is. Setting a high price is a very bad decision, since it loses the effect of the first few weeks, when a new property on the market has more visibility. A property that remains unsold for a long time tends to burn out , affecting its attractiveness to buyers,” he explains.
If a property has been on the market for more than a year, Champanier advised temporarily removing it. “A property that has been on the market for so long is likely overpriced or has not been managed properly. It is important to rethink its visual presentation and valuation to recapture the interest of buyers.”
www.buysellba.com
