It is not always that the price of a property is correct. Sometimes, an owner wants to sell his apartment in Miami, and believes he can obtain a certain amount for it. There are methods to determine this amount, and if it does not correspond to his expectations, the property simply might not sell. When an owner decides to sell his property, he certainly has his reasons for doing it. It can be personal life change such as a marriage, divorce, more children, or his finances are different now. Maybe he bought another property and needs the money for deposit. His reasons are irrelevant to determine the value of his property.
Incorrect pricing might happen when an owner tries to sell his house with an inexperienced realtor, and they decide to list the house for the price the owner wants, without regard to a market comparison study. It is necessary to check, for example, what sold in the neighborhood in the last few months, what is being sold now, and the quality of the subject property.
If the price is set above the fair value, it will highlight the lack of amenities and finishing details of the house that other properties in the same price range might have. This way, the property with the incorrect price will remain in the market for a long time, helping to sell the other properties, simply through a process of comparison.
Nor should the owner and realtor pick a high price only to be able to negotiate with a buyer later. Many buyers are not interested in entering in major negotiations and believe that the price listed is the final one, never making a lower offer.
If the buyer will finance the property, the bank might not accept the value of the property in its appraisal, and under appraise the property, affecting the amount of the loan and the required deposit.
Some owners believe that they will get the price they want because they are not in a hurry, and they can wait to get their price. Some even believe that it is worth that much because their friends said so. That couldn’t be further from the truth, because the market sets the true value of the property, and if it is not sold after a month, buyers will start questioning if there is something wrong with the property or the price.
To achieve the maximum selling value, and quickly sell a property, the price should be set according to a market analysis.
If you want to get your free market analysis for your property, or one that you want to buy in Miami, call me. This analysis is FREE. Let’s Talk About it. At ALM, we have wonderful options for you. Now, also offering concièrge services. Buy and sell with confidence.