Why is it important to start a sale with the right price?

The whole truth about the real estate market price

Every true seller, regardless of the goods they have, wants to sell for more, and the buyer wants to pay less. However, a sale only occurs when both the buyer and the seller „meet“ each other in their price expectations. Everything happens the same way in the real estate market. Buyers are always looking for the best price-quality offer, and sellers are looking for those buyers who agree to pay the most. How to find a buyer who will agree to pay more? The secret to success in selling real estate lies in the quantity of interested buyers. The more buyers you attract with your property for sale, the more expensively you will sell it. Your selling price will naturally increase due to competition among buyers. But how to „lure“ many buyers if there are many sellers like you on the market?

Many property sellers make the mistake of starting a sale with an overpriced property, believing that they can always bring the price down to a realistic price if a buyer does not turn up. Buyers are now more aware of the market situation than ever before. Buyers do not even need to leave their homes to compare market prices. They can view most offers online. Only the best offers interest them. It takes 3-6 months, and sometimes longer, before a buyer chooses the property he wants to buy. Therefore, during this whole period, the buyer keeps a close eye on the market of interest and remembers by heart all the ads he has viewed on the internet. Therefore, the likelihood of selling your property for significantly more than the current market value is equivalent to winning a million in the lottery. If you start the sale at a price well above the market price, you may be sorely disappointed. It is only when the property is new on the market (which is only in the first month of the sale) that buyers are most interested.

However, this applies when the price of new real estate meets market expectations. If you offer a property at a significantly higher price, buyers„ attention immediately shifts to your competitors who offer a better price. Later, even if you lower the price to the actual market price, you won't get the same buyer interest you might have received in the first month of sale, as you will no longer be new to the market. When your offer lingers on the market for several months, it starts to arouse suspicion in the buyer: “If no one has bought this property yet, there must be something wrong with it...„. The longer you don't sell, the more you lose interest; in our jargon, the “listing gets worn out." Therefore, to attract buyers again, you have to significantly lower the price and sell it below market price. Thus, only real estate that sells quickly sells for the highest price. If you don't want to lose your initial appeal, start selling at the actual market price immediately. Organize open houses to increase buyer competition. This way you will win more.

How is the market price of real estate determined?

To determine the market price of real estate, we need to know:

1. Competitive environment. At what prices is similar real estate currently being sold – the expectations of current sellers.
2. Prices of completed transactions. What similar real estate has recently sold for - history of similar sales.
3. Current real estate market conditions and trends, i.e., the probability of market prices rising or falling in the near future.

Competitive environment. To find out what your competitors are selling similar properties for, you need to carry out a market analysis. Now that a large part of the advertisements are placed on the internet, it is not difficult to find out the expectations of other buyers. If you go to any popular property ad portal, you will find a lot of information, even with photos. Buyers compare ads according to location, area, number of rooms, furnishing, floor, year of construction, type of construction, furniture, parking spaces, surroundings, etc. when choosing which property to buy. Therefore, in order for a buyer to be interested in our offer, we will have to offer an attractive price. However, even after a detailed analysis of the competitors, we will not be sure that we already know the selling price of our property. The biggest mistake a seller makes when comparing competitors' prices is that they think the property is selling at the prices they see online. Unfortunately, on the internet you can only see the buyers' expectations, which can be very different from reality. And it may happen that even though your offer is the best among all your competitors, there is still no buyer. Because in that area, properties are only sold at lower prices. Sales history. This is why it is very important to know the sales history, i.e. the prices at which similar properties have already been sold. Although this information is not publicly available (it is only collected by the registry office and real estate companies), you can find several websites on the internet where you can enter your address and find out the value of your property based on the transactions that have taken place. For example, www.uNTu.lt You will be able to find out the value of housing in Vilnius, Kaunas, Panevėžys, Šiauliai, and Mažeikiai for free. Thus, after conducting a competitor analysis and learning the sales history of similar apartments, you will find out the current market value of your property. And knowing the true market price of your property, you will be able to sell it successfully today. In the event that selling is not urgent for you and you want to sell for more than the current market price, it is worth considering market trends as well. If the market is growing, it is possible that by selling your home in a few months or years, its price will increase. However, waiting is not always beneficial. If you plan to sell your home in order to buy a larger one later, waiting will be completely useless for you. Because even if the value of your property increases, the price of the property you want to buy will also increase. Then you will have to pay more.

How to determine the market price of real estate yourself

Without experience in the real estate market, it's difficult to determine its market price yourself. You can read more about it here. Don't know how to determine the value of the real estate you want to sell? I can help you. Based on the documents and photos you provide, I will determine the preliminary selling price of your property. The service price is from 30 euros. Contact me by phone at +370 655 31429 or by email at info@asmeninisNTbrokeris.lt