How to set up an offer price when listing your property
Updated: Jun 28, 2020
I often hear from people who want to sell their property that they know its market value. Usually their knowledge is based on two factors: for how much similar properties are offered in the neighbourhood and how much money the seller invested in this property.
It is very important to distinguish market prices from offer prices. Offer prices are those prices that you see in the ads. They reflect the seller’s personal opinion about the value of the property. In most cases, this is not the price at which the buyer will buy this property. While the market price is the point at which the seller and buyer agree to make the deal.
How it looks in reality: a person wants to sell a 2-bedroom apartment. To determine at what price to list it for sale, he checks in the Internet to see the price range of similar apartments in his area. He sees that on his street there is a 2-bedroom apartment similar to his, at the price of 5 million. He thinks “Great!” and lists his apartment at the same price. However, he does not know that the apartment he took as an example is being sold for the whole year.
Another owner decides to sell his two-bedroom apartment in the same area. He checks online and sees that there are already 2 similar apartments for 5 million. As a result there are 3 apartments are offered for an unrealistic 5 million crowns.
Of course, it may happen that on a growing market the prices of estate will grow and once overpriced properties would now be sellable. But if you sell one property to buy another, it’s is not the best strategy to keep it overpriced. With the growing market, you sell at a higher price, but you also buy at a higher price. This will not bring much value, but you will lose time on a long sale.
The best way to sell real estate is to correctly set the price so that the offer price is as close as possible to the market one.
When assessing the market value of a real estate, I use a database that is linked to prices in the Main land registry (Cadastre). For example, I’ll see how much your neighbour sold his house for.
In particular, I use:
• Price database www.cenovamapa.org, created in collaboration with the consulting company Deloitte Czech Republic. The same database is used by banks to assess real estates.
• Database of completed transactions of REMAX. There I can see how prices have changed from the moment of the offer until the moment of the sale.
Important is the real estate agent's experience and the knowledge of the particular area.
I can help you with your property market price evaluation for free. Leave me your contact details here: https://www.alexandrakurbanova.com/property-price-evaluation or call me today +420 606 171 876.
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