If you enter the market with an excessively high asking price, potential buyers may avoid the property and not arrange any viewing appointments.
Because prospective buyers know the market and its prices very well. On average, they spend more than a year searching for a new place to live. Furthermore, the internet contributes to a high degree of transparency regarding property prices, broken down by neighborhood and district. Almost all real estate portals also show searchers average prices and rents, as well as their development over the past few months.
When asking prices are too high, they often have to be adjusted downwards during the sales process. The problem is that many potential buyers are aware of this because they've set up notifications on major real estate portals based on their search criteria. These notifications automatically inform them by email when a new listing matching their criteria is posted online or when a price adjustment is made. In their eyes, the overpriced property eventually seems like a white elephant, and they might even speculate that the price will drop further. For the seller, this is an unsatisfactory situation: the sales process drags on for several months, and often the final sale price is below the market value.
As a seller, don't let yourself be swayed by a real estate agent who promises you an exceptionally high sale price. Often, their goal is simply to secure your mandate to sell your property. In the following months, they will then have to lower their asking price – with the consequences mentioned above.
Therefore, property owners should base their asking price on the assessed market value of their property. If the property is highly sought after, potential buyers will often start offering more on their own. In that case, the owner can consider initiating a bidding process with the help of an experienced real estate agent.
Are you unable to find buyers for your property and suspect that the price might be too high? We will determine the right selling price for you.
Photo: KittisakJira