When selling your HDB flat, many people tell you not to price too high because you will miss potential buyers, but if you price too low, you are lowballing yourself. Besides referring to the official transacted data on HDB or URA websites, there are very few resources on how to effectively set the selling price of your HDB flat.
All we know is that each property is unique; there is no identical property; the transacted price may not be your flat selling price; and not to forget, transacted prices are lagging indicators, which means you are using something that is fixed and unable to improve to predict something that is changing.
Property agents need the ability to analyse the HDB resale transaction prices to give the trend direction of the flat in your area, as it will help to understand the current market and how much similar flats are worth.
Prices are the most sensitive factor for buyers to include your flat in their viewing list; your objective is not to let buyers strike off your flat listing from their viewing list.
Buyers and buyer’s agents will not look at overpriced property listings, and they will put overpriced listings at the end of their viewing list. Buyers may stop viewing once they find the property that matches their requirements. In the selling process, pricing strategies form an important factor in a quick sale at the highest possible price.
To set the right selling price at any market conditions and close at a higher price, you need to determine whether the property you are selling is in the seller’s market or buyers’ market in your area.
The following factors will help you determine whether your property is in the seller’s or buyer’s market in your area.
Absorption rate of the month
Is the rate of properties sold by determining properties sold in a given area during a given period, normally one month.
Month of supply
Months of Supply is the measure of how many months it would take for the current inventory of properties on the market to sell, given the current pace of property sales.
Hi-Lo price ratio
Properties listed prices compare to the recent transaction prices.
Hi-Lo Price Ratio is the number of high price listings over the number of low price listings.
With all these factors in place, you are close to determining the right selling price for your property.
When the property you are selling is in the seller’s market in your area, you can set your selling price close to the highest transacted price. To sell at a higher price, you need sales strategies for a price breakthrough.
It is always a challenge when you are selling your property in a buyer’s market in your area. Price setting is more cautious to bring a result. You can set your selling price close to the lowest transacted price and apply to start low then sell higher strategies. The objective is to generate multiple offers and create competition among buyers. This strategy needs the skill to let buyers willingly up their offer to get the deal. Most of the time, we need to value-add the property you are selling.
One of the strategy is to let the buyer fall in love with your flat!
Pricing is an important factor for potential buyers to include your flat in their viewing list and make inquiries; without inquiries, there is no way to convert people to viewers of your flat, hence converting them to buyers of your flat. To learn more about pricing analysis and intelligent pricing techniques, do not hesitate to schedule a non-obligation discussion now!
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