Setting the appropriate asking price for your property during a sale is a nuanced task. Balancing an attractive amount for potential buyers with ensuring a reasonable profit poses a challenge for many. Before finalising a realistic and justifiable price, carefully consider various factors. The ongoing uncertainties in the real estate market, fuelled by COVID-19 and the Movement Control Order, heighten the complexity of this process. To determine an asking price in line with prevailing market conditions, follow these steps for a quick and successful sale.
What Is an Asking Price?
The amount the seller wishes to quote, known as the asking price, is not fixed and can be negotiated. The final sale price is determined through negotiation, with the property potentially selling for a higher or lower amount than initially suggested.
Why Getting the Asking Price Right is a Critical Decision
Set a realistic asking price to capture the interest of buyers. If it’s too high, potential buyers may explore more affordable alternatives, prolonging your property’s time on the market. Conversely, a too-low price risks undervaluing your property, potentially resulting in missed profits. Find a middle ground for a successful and lucrative sale. Check METProperty.com for the latest information on real estate prices, recent sales, and market trends.
Factors That Play a Role in Setting the Asking Price
1) Property Type
The kind of property ownership has a notable impact on the realistic asking price. Freehold properties like Armani Residence KLCC, providing perpetual ownership, come with fewer restrictions, simplifying financing and enhancing appeal. Owners have the freedom to make legal modifications to the land. In contrast, leasehold properties, with a restricted ownership period, revert to the government after a specified time, like 30, 60, or 99 years in Malaysia. The duration of the lease directly affects property value, with longer leases associated with higher prices. Owners can seek lease extensions before expiration.
2) Property Value Trends
Study recent sales of similar properties to set an appropriate asking price for your home. Strive for a price slightly above or below the average selling price, avoiding extremes to attract potential buyers successfully.
3) Type of Community and Amenities
A property positioned in a prime location with nearby amenities or within a prestigious residential neighbourhood can justify a higher asking price. Buyers are more likely to show interest and be ready to invest in such highly desirable locations.
Strategies for Precision in Determining Your Property’s Asking Price
1) Connect with Property Specialists
If determining the price for your house feels challenging or if you lack confidence in the process, it’s recommended to defer to the experts. A reputable property agent can handle the analytical work, conducting research and trend evaluation to ensure a well-informed pricing strategy.
2) Tune In to the Property Market
Examine the market to comprehend its dynamics. Identify whether it’s a buyer’s market, featuring an abundance of homes for sale and lower prices, or a seller’s market with heightened buyer competition and higher prices. Time the listing of your house strategically according to market conditions.
When aiming for a speedy property sale, setting the asking price should be of utmost importance. Gain a thorough understanding of all elements influencing the asking price, or, for superior results, seek assistance from a competent real estate professional.