Some Property Owners Are Tempted to Raise Their Prices. Is This a Good Decision? This Is the Complete Guide to Selling a Home During Inflation

Author: María Gómez Silva

Source: finanzas.com

Rising inflation in Spain (which stands at 10.8% year-on-year, according to figures confirmed by the INE) affects all goods and services, including real estate.

This situation raises many questions for those considering selling their property right now.

Should I ask for more money for my apartment than I initially planned, anticipating price increases? Should I wait for prices to rise so I can sell my apartment for more?

In fact, some property owners are already taking such measures, according to a sector professional.

“It’s true that some property owners say: since there is inflation, I’ll keep the price high and not lower it,” confirms Jesús Duque, Vice President of Alfa Inmobiliaria.

Raising Prices to Sell a Home Is Not a Good Idea

Experts unanimously agree that this is not the best strategy for selling a home during inflation, as increasing the price can only delay the sale.

“Ultimately, real estate prices are governed by supply and demand. You can ask for whatever you want, but if it’s overpriced, no one will buy it,” explains Elisabeth Ruiz Dotras, Economics Professor at UOC.

Bruno Cotta, Sales Director at Engel & Völkers Madrid-El Plantío, agrees: “If we want to sell our house, we must be willing to value the property at what the market is willing to pay.”

Duque confirms: “The owner should think of it differently: let the last euro go to someone else.”

How to Determine the Right Price for Selling My Home

So, how do you determine the price you can ask for your home?

To find a correct price, it’s crucial to look at the price per square meter in the area and also to see what similar properties are selling for.

“Our recommendation when selling is for owners not to try to increase prices due to inflation and to set the price based on the average for the area, according to similar properties that are being sold.”

“This is essential when setting an average sale price,” explains Anaïs López.

Always keep in mind that prices on real estate portals are listed prices, and there is usually a 5 to 10 percent margin for negotiation.

Also, note that the price we paid for the property when we bought it is not a good reference, according to López.

“Many owners look at the price they paid when they bought the apartment, but this may have changed over time, either up or down, and it’s always advisable to update these prices.”

Seeking Help from a Real Estate Professional

To help with this process and ensure that we don’t sell below market value, it’s always advisable to consult real estate professionals.

“It may be wise to turn to specialists such as appraisal companies, which will assess all the situations and guide us on the real market price of the property,” asserts Jaime Fernández, Manager at ASPRIMA.

Regarding the question of whether to delay sales, Francisco Iñareta, spokesperson for Idealista, notes that a slowdown in the economy could affect the market, so it may not be the best idea.

“It may seem obvious that the reduction in buyers’ purchasing power and the increase in mortgage costs could dampen buying interest in the second half of the year, slowing down sales, increasing the time on the market, boosting the housing stock, and thus helping to contain price increases,” points out Iñareta.

Preparing the Home for Sale

Lastly, another tip for selling a home (whether during inflation or not) is to prepare the house to look perfect for potential buyers. Although it may require an investment, it will allow you to sell it for a better price.

“I advise the owner to make a small move, stage the house for sale, repair damages, and give it a fresh coat of paint.”

“Make it look like it’s ready for its first communion. There is little culture in Spain of preparing a house for sale, but it is essential,” adds Duque.