This is a quite complicated question.
The right sale price starts with the right asking price.
And before you arrive at the right asking price there are a few things to consider.
And few mistakes to be avoided.
Let us start with the mistakes many people make…
Overprice your property.
Setting the right asking price is key.
The number ONE mistake that sellers make is setting an unrealistic price.
Do not lean too much towards what the Internet is saying. If it says: “Your house is worth an “X” amount, so that’s the price you can list it for”. There is no reason to either believe or follow that. Whatever others are asking is not always relevant. To simply include the cost of renovations and updates you made to your property is also not the way to go.
It is difficult for some people to “let go”.
Selling a place you called home for many years created many memories.
Many people, in general, find it difficult to keep their emotions in check when it is time to move on. Look at it as a normal business transaction and focus on the financial benefits.
If you put in the extra effort of home staging (read our article The Importance Of Home-Staging) and perhaps some remodeling, you automatically create some emotional distance because your beloved home doesn’t look that familiar anymore.
Expect the asking price.
Simply ask yourself when you buy something…
You fancy a “good deal” don’t you?
Most buyers will negotiate, and if you want to close a deal, you may have to play ball.
So, you best list your property leaving some breathing room for negotiations.
You are not in any rush, hopefully.
“No time” is a bad argument to sell your property.
Accepting any 1st offers might implicate you are selling too cheap.
However, each formal offer deserves a countermove. Consult with your agent what the best strategy is.
No viewings do not mean that there is no interest in your property.
If there is no interest after a longer while – consult with your agent and consider a change of approach.
Allow any agent to markup the asking price with their commission.
Big mistake. When your property is listed as an “open listing” with multiple agents: Always FIX the asking-price for all agents to be the same, INCLUDING their sales-commissions.
When you leave the door open for them to markup the price, your property will be advertised at different price levels which confuses the market and might even jeopardies a sale before it is even made.
Not Preparing for the Sale.
Do not think of the effort. Think of the (financial-) results.
To facelift your property (staging) has many advantages.
But it already starts with small details…
Tidying up your home or condo before buyers come to inspect is more important than you think.
A clean, fresh property. Aircon and lights on. Curtains open. It all helps.
First impressions count.
Talk too much.
Not being rude or anything, but we have seen deals not being done because of the owners talking too much. Some people get carried away either praising or criticizing their property.
Or simply ignoring “body language” when it is the right moment to close a deal.
Let your agent handle the property tour. With or even without your presence.
Property experts do this daily and are likely to be familiar with their buyers’ needs and interests. They will close the deal for you while protecting your bests interests.
Get upset with tire kickers.
Another reason to let your agent deal with the property inspection.
We all know them the tire kickers. They never seem to be satisfied with what they are offered.
Most likely they are not able to afford your property and so they will try to find things wrong with it.
Going into a heated argument is like adding fuel to the fire.
Although in some cases it is their way of trying to negotiate a better deal.
So, it is the agents’ task to clear the mess, if any.
So, we have dealt with human mistakes.
Now let us share some ideas to make things work!
Use an experienced real estate agent.
Do not try to be your own agent.
Properties “listed by owner” should be discounted to reflect the fact that there is no agent’s commission to be paid. However, this is something that many “owners” do not take into consideration when they set a price for their property. Some owners may have had an agent’s guidance in setting a reasonable price in the first place but may have been not happy with the agent’s suggestion and so decide to go for it alone. In both situations, the property may be overpriced.
Let alone the paperwork following dealing with a “listed by owner” property.
We have seen too many deals failing because of it. Professional agencies are familiar with all the paperwork and pitfalls involved in real estate transactions and can help make sure the process goes smoothly. This means there will not be any delays or glitches in the deal.
A good realtor is likely to have a very good sense (thanks to experience) of whether the property is priced appropriately or not and what a fair offering price might be.
He would also have a better insight on recently sold, as well as the ones unsold, comparable properties.
Listen carefully to what your agent has to say about the pricing strategy. They know what works and what does not. An experienced agent can read the market and its conditions for a more positive outcome. As with any strategy implemented, be prepared to have ongoing discussions about pricing with your estate agent. Normally the agent will get you the best price for your property.
Pricing a home is not a one-time set and leave procedure. A lot of factors constitute a home’s price and not all of them can be accounted for right at the very beginning. Leave your self-room to move around on pricing, be quick to react to changing market conditions or new information and you’re more likely to get the best price with the least amount of aggravation.
What else is it that a good agent can bring to the table?
He generally has your best interests at heart and increases your odds of a quick sale. Obviously, an agent has more experience negotiating home sales, helping you get more money than you could on your own.
And of course, their marketing tools are equipped to reach out to a qualified buyer’s audience. And we need buyers to sell.
We believe that a new Samsung smartphone of THB 4,900 feels like a better deal than THB 5,000, even although there is just THB 100 difference.
It is a psychological effect to go for the “99” pricing.
Price it to be found in property searches.
If you are looking to fetch THB 2.6 – THB 2.8 million, you might not want to list it at THB 3.2 million.
It would knock off a large potential buyers’ group that is searching for properties “up to THB 3 million”.
Avoid obscure pricing.
We already agreed that THB 2,990,000 for a property sounds better than THB 3,000,000.
It seems more approachable.
And please never set an asking price on any obscure number like THB 2,945,466.00.
It is distracting to buyers and gives a bad impression of you, the seller.
An oddly specific figure calls the wrong sort of attention. Buyers will be curious about why a price like that is shown and that leads them to other uncalled-for thoughts.
Work out a pricing contingency plan.
What is “Plan-B” if your property does not sell at the desired price?
Whatever the reason, play your cards spread on the table, should anything not go the way it was planned. Make sure there are no unpleasant surprises down the road.
It saves time and helps to set appropriate expectations in everyone’s mind.
Does the price feel right?
Do you have a good feeling about the price?
A question you can ask yourself as a bit of reverse psychology.
Or, perhaps you feel that the pricing of your property is at the lower end of the spectrum?
Keep talking with your agent, no matter what.
Please be reminded: Two sides to each coin. A buyer can fall in love with the property and is happy to pay a little more, or you have asked for too much and they decline. Strike the balance.
Let us get to the crux!
You are not going to 7-Eleven with your toothache.
So, the first step to take is to make up your mind whether you really want to sell and what motivates you to sell. You are not selling a property on daily basis, so you need to be prepared mentally and financially.
Your property might take longer to sell than you anticipated.
Engage a specialist agent to guide you and follow his advice.
Get in touch today if you are struggling to come to a decision and strategy planning.
Let us together work out a plan that suits your needs best. Your property is our vision and expertise.
Author: Mr. KC Cuijpers