What an owner loses when he overprices his property
One of the most common mistakes that sellers make is overpricing their property for sale. While it is natural to want the best value for your apartment, condominium, or villa, overpricing it can put a damper on your chances of selling your property.
If you’re planning on selling your Qatar property, here are some pricing mistakes to avoid. And to learn more about buying and selling real estate in Qatar, including houses and properties for rent, get in touch with our team today.
Effect of overpricing your property
- Lack of offers
The biggest effect of overpricing your property is the lack of interested buyers. With information on an area’s current market values becoming readily available, buyers nowadays can tell whether a property is overpriced or not.
If a property is priced too high, buyers will immediately dismiss it as out of their price range. By the time you decide to correct the listing price to fair market value, it may already be too late.
- Longer time in the market
Buyers looking at your hefty price tag will most likely breeze past your property and move on to other more reasonably priced ones. This will result in a lack of offers. Your property ends up in market limbo.
There is much suspicion that comes with properties that stay in the market for too long. Real estate window shoppers will see your property and wonder why it hasn’t gotten sold or if there’s something wrong with it. These assumptions will make these potential buyers hesitant to put in an offer. Eventually, your listing will expire.
The longer your property stays in the market, the more you lose money as well. After all, you are still obligated to pay for expenses like taxes, utilities, and insurance fees. This can particularly put a strain on your purse strings if you purchased another property before being able to sell your first one.
- Lack of competition
The ideal condition for your property as it hits the market is for it to be the subject of a bidding war. As you have more buyers putting up bids, this essentially raises your property’s value. However, this will only occur if your property is priced competitively.
With buyers shying away from a property they deem as too expensive, there’s no one to ramp up its sale price.
- Low offers
Many buyers have already done their research on comparative sales before starting their property hunt. If a buyer becomes interested in your property but also realizes that it’s overpriced, they’ll assume your lack of knowledge in properly pricing your own property. This will embolden them to present you with a low offer instead. Negotiations will ensue but there is a strong likelihood that the agreement would end up in the buyer’s favor. You end up at the losing end with your property sold at significantly less than your original price.
- Appraisal problems
Granted that your property gets buyer attention despite its high price, you may still run into problems when the buyer gets an appraisal. A professional appraiser or appraisal company will check the comparable sales in your area and the fair market value of your property. Once the appraiser finds that the property is priced way above its appraised value, you may have to lower the price or even worse, lose your buyer.
The correct way to price your property
- Do your research. Research is essential when it comes to pricing your property. To get an idea of how much your property is worth, take a look at similar properties for sale in your area or neighborhood. Keep in mind that a property’s value depends on its location, size, age, view, and condition.
- Work with a knowledgeable real estate agent. A good real estate agent will help you price your property correctly by doing a proper comparative market analysis. Some inexperienced or unscrupulous real estate agents may provide their clients with an unrealistically high price. As stated earlier, doing so will not end well for the seller.
To find a trusted and reputable real estate agent, look into their transactional record, marketing strategies, knowledge, and skills before selecting the one to work with.
- Increase your home’s value. Before listing your property and inviting potential buyers to view it, boost its value first. Make sure the plumbing systems and air-conditioning units are in top shape, update the lighting fixtures, and spruce up your bathrooms. You can even have minor renovations done that will add value to your property.
With these tips, you can justify the increase in price, even if just by a small amount.
Selling your Qatar property can be a challenge if you’re not familiar with the local market and how it works. That’s where we come in. At The Pearl Gates Luxury Realty, we strive to provide exceptional home selling solutions through our personalized and high-quality services.