Get the best value for your home: How to price your property correctly
Pricing is the biggest factor to consider if you’re thinking of selling your home. You don’t want to end up selling for less than your property is actually worth, but there’s no doubt that a lack of industry knowledge can lead to lost opportunities and ultimately, less cash. At the same time, you also don’t want to set the asking price so high that it scares off prospective buyers. There’s a fine balance to be struck. To make that prospect easier, we have rounded up some crucial tips and techniques that will help you to come up with the potentially perfect price for your asset. From sizing up the competition to assessing the average price per square foot for properties in similar areas, here is our guide on pricing a property correctly.
Tips to price your home for sale
Here are some pointers on home pricing strategies, based on factors, such as local market conditions, listings and more.
Determine your goals
Do you want to sell your property as quickly as possible, or are you willing to sit tight for the highest offer? Answering questions like these will help you determine where you stand with regard to pricing a property correctly. It will also prevent you from succumbing to the many pitfalls that come with pricing your home to sell.
For instance, lowballing the price for a quick sale may compel you to accept an offer that is lower than the property is actually worth. On the other hand, if you want to get the highest offer, you risk having your property sit too long on the market as potential buyers consider other, cheaper options.
To sell quickly without making major compromises opt for a price that will get buyers through the door quickly. If you price it just right, you may even start a bidding war that may drive up the overall sales price.
Work with an experienced real estate agent
The right professional agent will bring a great mix of industry experience and invaluable knowledge to the table. They’ll listen to your needs, take your own research into account, and use their knowledge of the local market conditions to set the best asking price for your property. They will also be more familiar with the intricacies of property sales in the UAE and the associated documents like RERA forms.
Your best bet is to hire the services of a reputed real estate agency. They will assign you an agent that is particularly skilled and experienced in evaluating properties that are similar to your own. Furthermore, they will compare the price of your home with recently sold homes in the same neighbourhood.
How much is your property worth? Different agents may come up with different prices. You can do your due diligence by researching multiple agencies and settling for one that has a particularly good track record. This way, you know that you are being offered sound advice.
Conduct a comparative market analysis
An experienced real estate agent will be able to compare your property to other similar properties in the area, taking into account factors that you may not have considered 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.
Understand the market
The local housing market will have a great impact when it comes to pricing your property correctly. For example, if you are in a seller’s market, where demand is more than the homes for sale, you can price your property slightly higher. However, things may change drastically if you find yourself in a buyer’s market where demand is less and buyers have a clear advantage. In such a case, you may have to price your property a little below its worth on the market to pique interest.
Consider the competition with current listings
Examine the price of active listings when setting up a price for your home. You don’t want to set a price that is too little or too much from what your property is actually worth on the market.
Tour active listings homes
Actively listed homes often do not tell the whole story. These listings are your competitors and it pays to see what they are actually offering to buyers before you set a price for your own property. To get an idea, you or your agent can tour these active-listed properties. This way, you see what buyers will see when they visit your own home.
A personal tour of similar active-listed properties can give you a general idea of what you like or dislike about them. More importantly, it will help you determine why prospective investors or buyers may prefer these homes over your own. Add anything to your own home that may make a better impression and adjust the price accordingly.
Leave a little room for negotiation
Factors like emotional attachment may discourage you from whittling down the price tag of your property, especially if it is one with a lot of memories; however, this may come back to bite you, especially if you have priced it higher than its market value. Keep the asking price under current buyer expectations and leave a little room for negotiation. This can result in a favourable outcome for both you and the buyer.
Frequently Asked Questions
How to find the sale price of your property?
Several factors come into play in a property’s valuation. This can include everything from its location to general condition, size, upgrades, square footage and other details. A professional real estate agent can produce a detailed valuation report after assessing your property.
How to price your home to sell?
It is important to consider that not all homes sell for the original asking price. Whilst some do, others may sell for higher or lower based on a myriad of factors. Not least among them, is buyer interest.
What is a lowball offer?
A lowball offer is one that is significantly lower than its market value and the seller’s asking price. To know about the factors that go into putting a property up on the market in the UAE, start by learning how to sell your property in Dubai.
Is your home still on a mortgage? Learn all about selling mortgaged property in Dubai.
Is Dubai a good place to invest in property?
Judging from Bayut and dubizzle’s annual property sales report for 2021, that certainly seems to be the case. Property sales have experienced an overall boom with areas like Jumeirah Village Circle and Business Bay in the lead for affordable apartments in the emirate.
Is the Abu Dhabi real estate market healthy for buyers?
According to Bayut and dubizzle’s annual Abu Dhabi sales report for 2021, the capital is a good option for thrifty tenants. Areas like Al Reef, Al Ghadeer and Masdar City offer a range of modestly priced flats.
That concludes our guide on pricing a property correctly. Check out how factors like market analysis and client requirements can help close deals fast with our tips to selling your property quickly in the UAE.
Are you selling a home in Dubai? Consider factors like the cost for selling a house in Dubai before you sell.
For more insight into the situation of real estate in the United Arab Emirates, stay tuned to MyBayut.
