It is important to analyze market supply, potential demand for the property, the current market situation, and the condition of the property. Appraising the home is a good starting point.

Source: yaencontre

Selling a property is a significant matter that should not be taken lightly, and setting the right price is crucial. It is a sensitive issue, and it is often best to leave it to professionals to avoid making mistakes.

Here are some key points from experts:

Steps to Determine the Right Price

Generally, it’s necessary to conduct a market analysis, study the real estate supply and demand, and obtain an appraisal of the property.

According to Montse Moreno, Vice President of the Spanish Association of Real Estate Personal Shoppers (AEPSI), this analysis should be done using both listing and closing prices. From this analysis, a closing price should be determined. “Additionally, a pricing strategy must be developed. This will depend on the potential demand for the property, the current market situation, and the condition of the home.”

To determine the starting price for the sale, an appraisal is required. Emiliano Bermúdez, Deputy Director General of donpiso, explains that there are two types of appraisals: online and in-person.

The expert recommends leaving this step to professional and specialized appraisers. “They will consider factors such as local demand, market trends, the selling prices of the last 2 months, and the specific conditions of each property.”

This step is crucial because if the price is set too high, the property may remain unsold, and if set too low, it may sell below market value.

How Much to Adjust the Price

According to AEPSI, there is no fixed percentage for increasing or decreasing a property’s price. “It depends. Each property has a personalized strategy.”

Meanwhile, donpiso notes that it depends on one’s market experience. “If the property is well-promoted at the time of sale, the information will reach potential buyers, and we can see if the set price is acceptable based on the number of property visits, contacts, and clients’ acceptance of the price. Based on this, decisions can be made to adjust the price up or down.” The expert also suggests considering a counteroffer with a discount, taking into account and comparing prices of other properties in the area.

Emiliano Bermúdez explains that once the property is marketed and well-promoted, one will know if there is a good response. “If there is no response within 15 days, the property may be priced above market value, and it may be time to consider lowering the price.” However, he warns that lowering the price can be risky, especially if done by the property owner, as it may lead to a sale at a lower price than what the market can bear due to anxiety to sell.

Will There Be Price Reductions?

According to donpiso, there have not yet been noticeable national price reductions. “We believe that the general situation has not yet reflected this effect. However, the price increase trend from the first half of 2022 has cooled; prices are not dropping but are also not rising.”

Montse Moreno has noticed a price reduction, “over the past year, I have observed that properties with less demand and in poorer condition are adjusting to lower market prices.”

Bermúdez predicts that 2022 will end with price increases of 3% to 5%, and it will not be until the first or second quarter of 2023 that there may be real price reductions. “These reductions will not be significant but will indicate a shift in the real estate market dynamics.” For example, ING expects a real decline in property prices of more than 3% over the next year.