Selling a real estate (apartment or house) is a difficult process because it involves time, dedication and specific knowledge. The biggest dilemma for property owners is to set the right price and the mistake made by 90% of sellers is the overvaluation of the real estate.
Establishing a correct or incorrect price directly influences the sale of a real estate, whether it will be sold relatively quickly and will remain on the market for a long time.
The negative effects of overvaluation of real estate
Many times sellers base their pricing on how much they paid for, or invested in, their homes. This can be an expensive mistake.
Below we will list the negative consequences and causes of failures in the process of selling a real estate due to the high price:
- You will scare the buyers
We all know that a seller wants to get the highest price, and a buyer wants to buy at a lower price. Many sellers place ads with exaggerated price, with the idea that the buyers will come and they will negotiate the price. However, active buyers who are at an advanced search stage already know what the real market prices are.
Even if the apartment has a good location, igood repairs, it is furnished and equipped with all the necessary equipment, the active buyers will avoid seeing it, because of the price.
- The real estate will not appear in the search filter
Nowadays, almost everything is sold through the internet. Real estate buyers also spend a lot of time on the websites of real estate companies, construction companies, or profile ads sites looking for their dream home.
If the price of real estate is not evaluated correctly you could lose a great deal of potential buyers.
For example: if you set a price of 62,000 € for your apartment, everyone looking for apartments up to 60,000 € will not see your property in search results. A price of 59,999 € sounds more attractive, do you agree?
- Long time for sale
An excessive price also means a long period of time until the real estate is sold. Sooner or later, you'll review the price anyway and will adjust it to the real market price.
You need to know that the property that is sold for a long time (months or even years) is losing moral value to buyers. So you'll have to fix a price below the market average.
- You will attract unprofessional real estate agents
There are real estate agents who will tell you exactly what you want to hear, that your property is worth more than the real market price. Such unprofessional real estate agents can not find customers and can not compete with experienced real estate specialists who follow the ethical code.
Due to the unprofessionalism of some real estate agents, sellers remain disappointed and dissatisfied with their services. Overvaluation of the price has serious consequences, either the property is not sold or is sold at a much lower price.
Determining the real market price
The chart below shows the tendency of sellers to set prices higher than the market average, but also the tendency of buyers to look for offers with the lowest prices.
Thus, there is an inconsistency between these two variables and the solution is simple - establishing the real market price.
Important
If a real estate is overpriced, it does not matter if the seller employs the best real estate agent, or has the best marketing plan, it will not be sold anyway.
There may be a few exceptional cases, but 99% of buyers will not accept to pay an overvalued price. You must always correlate the real estate price to the current real estate market.
Acces Imobil is a team of professional real estate specialists who can help you with the correct evaluation of the market price and the sale of a real estate in the shortest possible time.
Acces Imobil - with us you make the right choice!
12/1, Grigore Vieru avenue, Chisinau
phone: 078 888 900
