Probably one of the “million-dollar questions” of the day in a real estate transaction – “How much is it?”
It might be one of the trickiest things in the trade. Price it too high, no one’s going to be interested, price it too low, and you will be short-changing the owner (or if you’re selling it yourself, you’ll be hurting your own bank account).
Any real estate professional worth their salt should have their finger on the pulse of the market and would be best able to advise in this area. If you’re on your own, then you’ll need to do a whole lot of research in this area to ensure you do not price yourself out of the market, or hurt your pocket.
You might have heard many people look at the “fair market value” of a property as a good place to work on in terms of pricing a property.
So you’ll probably be wondering:
What is Fair Market Value?
It’s technical definition is – the highest price an informed buyer will pay, assuming there is not unusual pressure to complete the purchase.
To get an estimate of fair market value, contact us and we will do a Comparative Market Analysis (CMA) of your property. The analysis will give you a realistic figure based on the most salient features of our Singapore real estate market. It should provide information about recent sales of similar properties, including how much they sold for. Having a real estate professional like us would be beneficial in helping to determine the right asking price.
How can I determine the right asking price?
We can suggest asking prices based on a wide array of information you may not have at your disposal, including recent listing and selling prices or rental prices of properties in your area. Alternatively a formal appraisal or valuation may be done on the property to give credence to the asking price.
Time vs Price – Ultimate Showdown?
You will need to establish clear priorities. If you had to choose, are you more concerned with selling quickly, or getting the best price?
Objective 3rd party views
As the property owner, your emotional attachment to the property (especially if its your own home), might overshadow your objectivity in seeing possible flaws or disadvantages that may affect the price and the speed of sale. A third party’s objective opinion should be sought. Someone else like a neighbour, friend or relative — may point out advantages or disadvantages about your house that you hadn’t thought about. Third-party views will help you start thinking of your house as a commodity, with positive and negative selling points. Then you should decide on a price that you feel is competitive and consistent with what other houses in your area have sold for.
How flexible should I be about the asking price?
Generally, the first three weeks will be the test period of your initial asking price. If you see showings drop off and very few return visits, you may want to consider repositioning your asking price. Most buyers leave room for negotiation when they make an offer. Thus, a certain degree of flexibility is usually called for on the part of both the buyer and seller.
While it is ultimately your decision to accept or reject an offer, or present a counter-proposal, a good sales professional can be of great assistance to you during the negotiating process. In fact, negotiation is one of the valuable skills a real estate professional can offer you. As negotiations proceed — whether in writing, face-to-face, or by phone — your sales professional will inform you of your options in responding to each offer from the buyer, so you can make an educated decision as to how you want to proceed.