As an estate agent we often see clients try for a price above market but too often this new found optimism leads to disappointment, and a subsequent reduction in price.
Why do we do this?
We have every right to try for a higher price and as an agent our job is purely to achieve the best possible price in the current market.
In a booming market, all the variables are there to push for price, and indeed this should be done just like any market trading in stocks, commodities or cash.
But at the end of the day, if the market is a little flat or even declining, it pays to get it right at the start to avoid disappointment.
I have always been a big advocate of the 3P’s – Price, Presentation & Profile.
In this instance, the goal is selling / renting and for the best price.
We know that at any price, property will be absorbed into the market. But like most Agent, they ‘don’t want to give it away’.
So presentation and profile are critical in complimenting price to achieve a seller’s goals. Look at the comparable sales in the area – how many bedrooms, bathrooms, car spaces, sheds, garages, pools, solar, block orientation and elevation.
How does your home genuinely compare?
Just as the agent is forming a view on price from their experience in the market, you should also be looking to verify this price with your own data.
Similarly, presentation is equally important. The market may indicate similar homes around yours are selling/renting for X Naira, so by rights, you should also be able to list and sell for the same. But if the house is messy, cluttered, un-loved, then it’s no surprise that you will find yourself making a price adjustment in weeks’ to come.
They are very well informed with all the latest info right at their fingertips.
Get it right, and you will enjoy a reasonably quick sale / rent for a good price. But get it wrong and your days on market will be longer, with painstaking price adjustments to follow.