When you’re bringing a property to market it’s vital that you set a realistic price for it. An overpriced villa or apartment could mean your sellers are waiting a long time for an offer, with potential buyers being put off before they’ve even made an online enquiry.
By keeping an eye on prices and activity within your portfolio, you can make adjustments to the prices of your properties. This will make sure you get the best possible outcome for your sellers both in terms of the amount they receive and the time it takes to sell their property.
So, what should you consider when setting and reviewing prices for the properties on your books?
Length of time on the market
If a property remains on the market for a long period of time, it indicates that the price is not appealing to potential buyers. There could be many reasons why a property is not selling, for instance its location or the condition of the interior. But for every property there is a price that someone will be willing to pay. Ask for feedback from viewers to determine why they’re not keen to buy. This information can then inform a discussion with your sellers to decide whether a price drop is appropriate.
Frequency of viewings and online visits
By tracking the number of viewings you’ve arranged for a property, you’ll be able to tell how interested potential buyers are in it. If viewing numbers are low, you’ll need to consider whether price could be the issue, while if viewing numbers are high but the property still isn’t shifting, it’s important to get the opinions of those who have looked round.
Similarly, if you advertise with a portal such as Kyero, you’ll be able to easily track the amount of interest shown online, either through visits or enquiries. If these figures are low, consider whether reducing the price could be the answer.
Other properties on the market in a similar price bracket
One of the most common ways to set property prices is to look at other, similar properties that are on the market. Check that yours compare favourably to the ones that are already in the price bracket you’re considering. By setting your property at a price higher than others that are similar you will be faced with a lack of interest, disappointed viewers and ultimately a long path to a sale.
Sales trends in the area
By following Kyero’s market reports and staying on top of key sales trends within your area, you’ll be able to find out which property types are selling well. Properties and areas that are popular will command a premium as there are more buyers looking and therefore more competition for the purchase. If you notice an area trending upwards, you may be able to price your properties at the higher end of their value. However, if you spot, or suspect, a downwards trend, you’ll need to reduce prices accordingly to stay ahead of sales within in the local market.
Changes to an area’s infrastructure or services
Even the news that services in an area will be changing can begin to inflate local property prices. Stay abreast of the news in the areas you’re selling in to be ahead of the game. Improvements to transport infrastructure could be key to price growth, for example, if they reduce the commute into a large city. Conversely the closure of local amenities could have a negative impact on housing stock and sales. By keeping on top of what’s happening you can ensure your properties are priced at the right level to sell more quickly despite or indeed because of these changes.
Local economic fluctuations
When the economy in a region is growing, we see an increase in the number of people wanting to buy in the area. Take a look at the key economic areas within your region. Where these are growing and business is booming, you’ll see a rise in potential buyers with interest in properties in the surrounding area. This will begin to push prices up. Bad news for an area, however, such as the collapse of a large, local employer could have the opposite effect, leading ultimately to a reduction in house prices.
When determining a price for a new property coming to market or considering whether to reduce the price of one that has been on for a while, it is important to consider a number of factors. The value of a property is affected not just by its condition and size but by the changing popularity of the location in which it sits. Ultimately, the value of a property is determined by how much a buyer is willing to pay for it. By working to set the right prices for your properties you’ll be setting your vendors up for sales success.