Every real estate transaction begins with the right price. People buy or rent homes that fits within their budget and caters to their needs if not perfectly but close enough to what they want. The marketability of your property is not only dependent on what your property looks like but also dependent on whether your property is rightly priced for proper positioning in the market. To help you better price your property, we have put together a list of factors that could serve as a guideline for proper pricing. Here are some factors you need to consider when pricing your property:
Know the market: Knowing how the market operates helps you understand what clients are currently looking to get and how much they are willing to pay for it. As a seller or a landlord, you might be tempted to just place a price on your property based on how much you think you might gain from it but a proper knowledge of the market would tell you exactly how much clients are willing to pay at any point in time and thereby give you a better place to price from.
Consider recent comparable: One of the main things you need to consider when pricing is how much the properties of the same type are currently going for then you are able to adjust based on the major characteristics of your own property. For instance, if a 5 bedroom duplex in Lekki is worth about 200 Million but this property has been in the market for about 8 months without a buyer and another within the same location priced about 10% lower was sold in just 3 months, there might be reasons to consider repricing that property.
Fixtures and fittings matter: You understand the market now and you have been able to compare other properties with yours, then the next thing you need to know is that the fixtures and fittings in your house contribute to the value of your property to potential buyers. Every property is unique no matter how similar they might seem and the differences might range from exact location to the fixtures and fittings in the property and this might make a big difference in the price.
Think like a buyer: As a seller or a landlord, you sell based on what your return on investment should be or what memories your home holds personally to you but one of the things you should know is that no matter what the sentimental value of your property is to you, the buyer of your property most likely would not think that way. He or she would probably buy or rent based on the perceived value to them. Therefore, pricing from your point of view might actually hurt your chances in the market.
Use your realtor as a resource: One of the major ways to know what the right price is, is by speaking to your realtor about what is obtainable in the market. Realtors are a wealth of knowledge for real estate transactions as they constantly keep up to date on what happens in the market or have personally conducted transactions within the neighbourhood in which your property is located therefore it is to your advantage if you have a realtor who can advice you on what your property is worth at any point in time.
These are some of the factors you could consider when pricing your property but still since pricing is not a perfect science, it is always advisable to price within range than above or below as this gives you room to adjust depending on how the market swings.