Realistic Price Estimation For Successful Home Sales
Assessing the value of your own property is often difficult. Of course, you want to get the best possible price when selling your home. However, you should keep in mind that a purchase price that is too high could put off potential buyers. Experience has shown that there is nothing worse than gradually lowering the price. Because the prospective buyers observe the market very closely and over a longer period of time. The popular saying ” forge the iron while it’s hot ” hits the bull’s eye. The longer a sale goes on with more and more price adjustments, the greater the risk that the property will eventually be “burned” on the market, and not at all there is more demand.
Avoid excessive prices & determine realistic market value!
On the other hand, you don’t want to give your property away, of course. So how do you estimate the realistic price?
Compare Property Prices
There are different ways here. If you want to sell your house fast, you can, for example, compare your property in advance with properties offered online and observe the market situation via the major real estate portals. It should urgently be taken into account that there are also a number of inflated offers to be found there. These can include considerable room for maneuver. Sometimes the properties on offer are not sold at all or not at the offer price in the end.
Check out Market Reports
Another possibility for rough pricing is property market reports, which are available from the local expert committee. These market reports are based on statistical evaluations of concluded sales contracts, which are carried out by the expert committee. In this way, you can find out about the development of the real estate market in the region in comparison with previous years. However, forecasts for further development are not part of the property market reports. Also, online portals, banks, and real estate agents offer market reports. But you have to keep in mind that every property is different and only market reports and comparisons with other properties on offer can provide rough clues. In this respect, another option for a realistic price assessment appears particularly advisable, namely an appraisal or a valuation for your property.
Work with a Real Estate Broker
Many real estate brokers offer for your customer’s valuations. These are often even free of charge. In order to get a solid estimate of the currently achievable purchase price, you should pay attention to the experience and market knowledge of the company. If you want to work with a broker, the market value of your property will be determined after an initial on-site appointment on the basis of empirical values and current market data. The value of the property is determined on the basis of various criteria.
For example, the location, the size and distribution of the property, the size of the property (standard land values), the standard of equipment, and the state of maintenance determine the price of the property. In the case of rented single and multi-family houses and apartments, the income, the type of contracts concluded, the division of the community of owners, and the like also play a role. an important role. Overall, this usually gives a very realistic picture of the currently best possible real estate purchase price on the open market.
Assessment by an Appraiser
However, there are also cases in which a market value assessment by an appraiser is advisable. This is the case, for example, when the value of the property is required due to legal disputes in divorce or inheritance matters. In Europe, the real value, income value, or comparative value method is used to determine the market value.
The market value indicates the most likely to be achieved price if the object would be sold on the valuation date in the ordinary course of business, according to § 194 Building Code. This means that all contracting parties act prudently without pressure and time pressure, have the necessary expertise and that seller and buyer are not in a personal relationship with each other (no “friendship price”). However, apart from this definition, the real real estate market usually does not have such ideal conditions, so that the actual proceeds from the real estate sale can deviate from the market value.
In summary, you should, at best with the support of an expert, be clear about your ideas on the one hand and the realistically achievable sales price on the other. This should be the best possible price, but not an inflated price. Also, consider any existing defects and necessary maintenance measures for the property. Plan some leeway for possible negotiations and consider the financial possibilities of your target group of buyers.
If you have previously financed your property and the financing has not yet been redeemed, you must also take the ongoing financing into account. The purchase price or your financial means must be sufficient to replace your previous financing. In addition, other fees may apply, such as an early repayment fee charged by the bank or the speculation tax when selling a property that is not owner-occupied within 10 years. This would lead too far at this point. As you can already see, determining the best selling price is one of the key points (and sticking points) of preparation.