Determining the optimal asking price for your property during a sale can prove to be a complex endeavour. Many individuals grapple with finding the right equilibrium between an enticing figure for potential buyers and ensuring a respectable profit margin. It is crucial to consider various factors before settling on a price that is both realistic and justifiable. The existing uncertainties in the real estate market, stemming from the impacts of COVID-19 and the Movement Control Order, introduce an additional layer of intricacy to this task. To establish an asking price that aligns with current market conditions, follow these steps for a swift and successful sale.
What Is an Asking Price?
The seller’s proposed amount, known as the asking price, is subject to change. The final sale price is determined through negotiation, allowing the property to be sold for more or less than the initially quoted figure.
The Importance of Determining the Right Asking Price
Set an achievable asking price to attract buyers effectively. A price that is too high may drive potential buyers towards more economical options, leading to an extended period on the market. On the other hand, a too-low price risks undervaluing your property and missing out on potential profits. Strike a balance for a successful and profitable sale. Utilise platforms like METProperty.com to investigate real estate prices, recent sales, and market trends.
Key Determining Factors for Asking Price
1) Real Estate Variety
Property ownership type plays a crucial role in determining the realistic asking price. Freehold properties like Armani Residence KLCC, characterised by indefinite ownership, boast fewer constraints, easing financing and increasing appeal. Owners enjoy the liberty to make legal modifications to the land. Conversely, leasehold properties, featuring limited ownership years, revert to the government after a predetermined period, like 30, 60, or 99 years in Malaysia. The duration of the lease directly influences property value, with lengthier leases commanding higher prices. Owners can request lease extensions before expiry.
2) Changes in Property Market Values
Research recent sales of similar properties to establish a fitting asking price for your home. Target a price slightly above or below the average selling price, avoiding extremes for effective appeal to prospective buyers.
3) Neighbourhood Type and Facilities
The asking price for a property in a prime location with nearby amenities or within a prestigious residential neighbourhood can be higher. Buyers are likely to express interest and be willing to invest in these desirable locations.
Setting the Perfect Asking Price for Your Property: A Guide
1) Obtain Guidance from Property Experts
When pricing your house becomes overwhelming or if you’re uncertain about the process, it’s best to delegate to experts. A reliable real estate agent can handle the analytical work, conducting research and trend evaluation to establish a well-informed pricing strategy.
2) Be Alert to Property Market Shifts
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 based on market conditions.
When aiming for a swift property sale, prioritising the determination of the asking price is crucial. Thoroughly understand all elements influencing the asking price, or, for optimal results, enlist the services of a qualified real estate professional.