Setting the appropriate asking price for your property can be a daunting task when selling. Striking a balance between an appealing offer for potential buyers and securing a reasonable profit poses a challenge. Before finalising a realistic and justifiable price, carefully weigh multiple factors. The uncertainties in the real estate market, exacerbated by COVID-19 and Movement Control Order implications, heighten the complexity of this process. To establish an asking price in line with prevailing market conditions, adhere to these steps for a prompt and prosperous sale.
What Is an Asking Price?
The listed price represents the seller’s desired amount for potential buyers, yet it remains flexible. The ultimate sale price hinges on negotiations, allowing the property to be sold for more or less than the initial asking amount.
Why Setting the Right Asking Price Matters
Establish a reasonable asking price to entice potential buyers. If it’s excessively high, prospective buyers might choose more affordable alternatives, resulting in a prolonged time on the market. Conversely, setting the price too low poses the risk of undervaluing your property, potentially sacrificing profit. Find a middle ground to ensure a successful sale. You can research on real estate prices, recent sales and market trends on platforms like METProperty.com.
Factors That Determine the Setting of the Asking Price
1) Type of Real Estate
The type of property ownership significantly influences the realistic asking price. Freehold properties like Armani Residence KLCC, offering indefinite ownership, come with fewer restrictions, simplifying financing and enhancing desirability. Owners have the flexibility to modify the land within legal limits. In contrast, leasehold properties, with a set ownership duration, revert to the government after a specified period, such as 30, 60, or 99 years in Malaysia. The length of the lease directly impacts property value, with longer leases associated with higher prices. Owners can seek lease extensions before expiration.
2) Trends in Real Estate Prices
Determine an appropriate asking price for your home by examining recent sales of comparable properties. Strive for a price slightly above or below the average selling price, steering clear of extremes to attract potential buyers successfully.
3) Neighbourhood Style and Amenities
A property situated in a prime location with nearby amenities or within an esteemed residential neighbourhood can warrant a higher asking price. Prospective buyers are more inclined to express interest and invest in such sought-after locations.
Tips on Setting the Appropriate Asking Price for Your Property
1) Seek Assistance from Real Estate Specialists
If setting the price for your house seems daunting or if you lack confidence in the process, it’s advisable to entrust it to professionals. A trustworthy real estate agent can manage the analytical aspects, conducting research and trend analysis for a well-informed pricing strategy.
2) Stay Informed about Property Market Trends
Analyse the market to grasp its dynamics. Ascertain whether it’s a buyer’s market, with an abundance of homes for sale causing lower prices, or a seller’s market, characterised by intense buyer competition and higher prices. Strategically time the listing of your house according to prevailing market conditions.
The Last Say
If a quick property sale is your goal, setting the asking price should be a top priority. Familiarise yourself with all factors affecting the asking price, or, even better, engage a competent real estate professional to maximise your property’s value.