Knowing the approximate value of a property can be useful for a variety of reasons: sale, relocation, inheritance, investment, asset calculation or just curiosity. But when it comes to a real estate sale: you only get as much as the buyer is willing to pay. The market determines the price.
It is just the same as when selling car, ensuring that everything under the bonnet is working (i.e. internal heating, electrics and plumbing etc.) as well as the property's appearance being in good general appearance, are the nuts and bolts of a successful sale. Similarly analogous to buying a second-had car, a negotiation of price is quite normal. Only in the rarest of cases will the actual purchase price be exactly the same as the selling price. Therefore, it is advisable to get an overview of what you can expect in advance.
Higher or Lower
On this basis, one should set a minimum price and scope for negotiation –especially if the proceeds of this property are being used to fund the purchase of another. Of course the key purpose of this is to get the best possible price. A realistic assessment before advertising can be very valuable.
Those who demand too high a price from the beginning could scare off potential buyers willing to negotiate. This may delay the sales process by many months or even years and in the end you could receive a revenue below the actual market value. Equally, if you set a price that is too low, you will lose money on the sale and may also create uncertainty for the buyer. Property investors often observe the real estate market over a long period of time and a gradual reduction of the price could be seen as a negative sign.
Therefore, it is always better to set a realistic estimate of the market value, and then advertise the property about 5% above this value. In this way one often reaches a selling price that is very close to the market value. Do not underestimate the psychological factor, a negotiated buying price gives the purchaser a feeling that they have made a good deal. A professional assessment of market value, such as obtained from a broker or appraiser, also creates trust with the buyer.
Why Sell (Now) At All?
The real estate industry is booming and housing will always be a valuable asset. In this respect, the question is justified, why you should sell a property at all, instead of renting it, or to keep it as an asset. The truth is that property is a commodity and loses value through use. That means: holding property costs money.
When is the best time to sell my house?
Anyone who is unsure whether the time is right for the sale should observe the market for a while. A regular search and evaluation of comparable objects provides an overview of the basic price level. In this way, it is possible to estimate where the maximum achievable price will be approximately.
The main reasons for a property valuation
- Location of the property on the market
- Achieve the best retail price / rental price
- Planning security for the future
- Guideline for the purchase of another property
- Decision support for further action
- Optimal preparation for the conversation with a broker / prospective buyer
- Information about your own assets
- Important for separation of property (eg divorce) and disputes
- Crucial for the further procedure with inheritances
Trusting Alexander Jacobs property advisers makes sense, and saves time. Streamline your research and have a more comprehensive view of the offers that suit you best. Benefit from our in-depth knowledge of the local market around Retford and our experience with other property owners in whom we work in close collaboration. Choose us to get your property on the market and sold fast. Everyone wins!