The property price is the single most important factor (after its location, of course) that matters the most for the majority of homebuyers in India. In simple terms, one can say that the property prices can make or break a deal for buyers.
Therefore, if you are planning to sell your apartment at the moment, it makes complete sense to invest your time in finalizing the right selling price of your home – a price, which is in tandem with the current market rates and gives you a decent return on investment. Now, let’s understand how you can determine the right price for your property?
Deciding a price for your residential property requires analyzing multiple factors. The quoted price will highly influence how fast your home sells and how much profit you will make from its sale.
Hence, it is always advisable to take some time and consider the following aspects before selling your property to anybody – conduct due diligence, talk to your connections and then come up with the final property price.
Factors To Consider While Determining The Right Property Price
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Consider Your Overall Costing and Circle Rate
The first and probably one of the most crucial steps while selling your property is to calculate and sum up the amount you have spent on acquiring and maintaining your home. You do not want to end up incurring a loss, even if you are conducting a distress sale. Therefore, check your overall costing such as the original property purchase price, maintenance charges, refurbishment expenses, brokerage, among others and then quote your final price to the buyers.
Besides this, also verify the circle rate in your region. These are the minimum property values set by the state government below which no sales transactions can take place, so make sure that your final price is above this value.
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Conduct Comparative Property Analysis
Compare the final selling and listing prices of comparable properties in the area. This will provide a good starting point for setting up the right price. While doing so, ensure that the comparable properties have similar configuration, type, and size (such as 1 BHK, 2 BHK unit, builder floors, high rise, or square feet area) to yours. These properties should also be roughly the same age as your residential property (like 5 or 8 years old).
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Consider Important Variables
Another factor that you should consider while determining the right price of your apartment is checking for crucial variables that can impact your property value.
Consider the aspects such as local neighborhood, age of your property, amenities (car parking, gym, clubhouse among others), modern features (modular kitchen, east-facing flat, top-floor etc.), proximity to business hubs, connectivity, social amenities (hospitals, schools, shopping complexes and others).
Apart from this, you should also analyze current market conditions – is the economy facing a downtrend? How is residential real estate performing?
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Keep Your Emotions Aside
Perhaps you have spent a lot of time living in your property and have gotten attached to it. This may have an impact on your ability to objectively price your property. In such a scenario, it would be better to think like a buyer and assess the property value in an unbiased manner to set a realistic price.
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Be Open To Change
If you are not getting the expected response while selling your home, maybe you have set the price of your property too high. In such a case, after some careful consideration, it is perfectly fine to reset the prices to attract the buyers.
Further, when in talks with potential buyers, it is good to be flexible and willing to negotiate. In order to complete a sale, you can try to accommodate a 4 to 6 percent price reduction based on your cost evaluations.
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Don’t Be Afraid To Seek Professional Help
Consider seeking professional guidance from a real estate agent who can help you determine the optimal price for your property. Real estate agents will provide you valuable insights into local market trends, buyer preferences as well as pricing strategies. They can provide expert advice and guidance based on their knowledge and experience, helping you make informed decisions and achieve your goals.
In conclusion, with careful consideration and strategic planning, you can set the right price for your property and achieve your real estate objectives. And whenever in doubt, it is advisable to seek professional advice. Consulting a property agent will double your chances of getting a good deal.