How to price your home for sale. Avoid copy and paste.

Como le pongo precio a mi casa

If you’re thinking of selling your house or flat, you’ve probably asked yourself the million-dollar question: How do I price my house?

Consider that the value of a house is determined by many factors, including the location, size and condition of the property, as well as its proximity to amenities and transport. The market also plays a role in determining value.

To get an accurate estimate of your home’s value, you should be aware of these factors and make sure your information is up to date.

Common pricing mistakes

Terraza de un piso en Santa Ponsa, Mallorca.

Who has not thought or heard at least once in their life a friend who wants to put their flat up for sale say the classic phrase "It's because my neighbour sold it at this price". It is clear that we are always referring to the neighbour who has been able to sell it at an attractive price and not to the neighbour who must have sold it at a lower price than what we are thinking of selling it for. The reasoning is correct from the owner's point of view (who wouldn't want to make the maximum profit?) But is it correct from the market's point of view? Most probably not.

The second most common mistake an owner tends to make when pricing their property is to do so subjectively rather than objectively. It is clear that they have put love and care into maintaining it and have lived many personal moments in it, but the buying public does not take this into account when buying it. For this reason, emotions should be kept out of the evaluation.

We can say that these are the two main mistakes that lead to an overvaluation of the property.

Factors to consider for pricing

We are not going to propose all of them, we simply want you to have a more concrete idea of what could affect the price of your home. Imagine that selling because you have a financial need is not the same as being able to wait a little longer.

Valuing through the buyer's eyes

In the sale of a property there are two parties who must come to an agreement. The seller and the buyer. Imagine that these two parties are at the extremes of a line and have to reach a middle ground in order to make the sale of the house a reality.

Now, a process that we use in our agency (which I recommend if you want to put your house up for sale) is the buyer’s Identikit. You must imagine who is the right target audience for your property: a single person, a couple, with or without children, etc.? From here, put yourself in their shoes and imagine with what eyes they could perceive your house during a hypothetical visit and what defects they could find and write them down on a piece of paper.

Perfect! Now ask yourself… How much would I pay for this house? This is just an exercise, but I assure you that it works to put a more realistic price on your house.

Is an appraiser useful?

When a client decides to sell their property we always advise them to have it valued by an official valuer. Why? Firstly, because you can get a real idea of the market value of your home and secondly because you will have an official document that backs up the proposed price in front of a potential buyer. Also, if the buyer needs to finance a part of the house with a mortgage, he would already have the valuation done and this helps with the timing.

Conclusion

In conclusion, of course, when you put your house up for sale you want to collect as much as possible, but the question you have to ask yourself is ….. If I were the buyer, would I be willing to pay what they are asking for the value they are offering me?

For this reason, at Real Estate Balear, we believe that the advice given by a real estate agent must be personalised and sincere towards the owner. This is the only way to achieve a successful strategy.

We understand, as professionals in the sector, that if the owner does not want to adapt to the market, it is often better not to manage the sale of the property in order to avoid wasting time and frustration on both sides. At the end of the day the sale of a property must be satisfactory for both the owner and the buyer. It is a classic win/win situation.

Now it is time to finish. I hope I have been able to help you in knowing how to evaluate your property. A big hug from our team and best of luck for the sale of your home.

Remember! If you don’t know where to start, don’t worry… you can contact us without obligation so that we can advise you on the sale of your home.


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