When you are thinking of selling your property, price is the most crucial consideration. Lack of real estate industry knowledge will lead to missed chances and eventually less money. However, you also should not set the price too high so that interested parties turn away. You have to find the right balance. This guide to correctly pricing a property covers everything from evaluating the competition to calculating the mean price per square foot in famous areas like Six Senses Dubai, Business Bay, etc.
Tips for pricing your home correctly:
Here are some tips on property pricing strategies based on real estate market conditions, offers, and more.
Decide your goals:
Would you like to sell your property quickly or wait for the highest bid? The answers to this question will help you decide whether you’re valuing a property correctly. Likewise, it will avert you from becoming victim to the difficulties of pricing your property for sale.
Keeping the price low for a quick sale may mean you have to accept an offer that’s less than the property’s true value. On the other hand, if you want to obtain the highest offer for your ready or off-plan properties Dubai, you risk keeping it on the market for too long as investors consider other, cheaper opportunities.
If you want to sell quickly without making big compromises, set a price that captivates buyers quickly. Getting the price right can even trigger a bidding war that drives up the overall selling price.
Contact an experienced real estate agent:
Experienced brokers have a great combination of invaluable knowledge and industry experience. Your broker will listen to your requirements, taking your research into account and using their knowledge of real estate market conditions to decide the best bid price. Additionally, they are more familiar with the difficulties of selling property in Dubai.
Use the services of a well-known real estate agency. The agency will provide you with a broker who is experienced and specialized in valuing properties similar to yours. Furthermore, they compare the value of your property to recently sold properties in the same neighbourhood.
Understand the market:
To price your home correctly, you should consider the local housing market. When demand for apartments outstrips the number of apartments for sale, you can value your property somewhat higher at a seller’s market. However, if you are in a seller’s market where demand is lower and sellers have a clear benefit, things can change radically. You may have to price your property slightly below its value to attract interest.
Tour active listing properties:
Actively listed properties don’t always tell the full story. When pricing your property, you must look at what your competitors are providing. These active-listed properties in Dubai can be viewed by you or your broker to get an idea. This allows you to analyze what buyers will look at when they visit your property.
Contacting an experienced real estate agent will tell you exact what the price is in the market and in which bracket you can play with. He will compare your property to other similar properties in the area, considering all factors with regard to setting your asking price. This might include its age, general condition, square footage and upgrades.
For instance, you may know that a homeowner in the area with a similar floor plan as yours has sold his property for a higher price than its actual market value. What you may not be aware of are upgrades that the property owner may have introduced in their home, like an extra bathroom or a remodelled kitchen. Taking upgrades and other valuable factors into account will help you determine an appropriate asking price for your own property.
Another tip is to compare the price of akin square footage properties in similar areas. You could also read our detailed market trends reports to learn the average ‘price per square foot in neighbourhoods all across the UAE.
Leave a little room for negotiation:
Emotional attachment can make you reluctant to lower the price of your property, especially when there are many memories associated with it; However, this may fall back to bite you if you’ve overpriced it. Keep the asking price below the current buyer’s assumptions and leave a bit of room for negotiation. This practice can result in a win-win situation for the buyer and you.
With the above tips, you can price your properties correctly whether they are ready properties located in Business Bay or off-plan properties situated in Six Senses Dubai or other famous areas.