Pricing guide: How to set the ideal price for your property?

Setting the right price for your property is one of the most important decisions when selling. A well-judged price can speed up the sale and attract the right buyers, while a price that is too high or too low could turn away interested parties or decrease your profits. In this guide, we offer practical tips on how to determine the ideal price for your property.

1. Know the local market

The first step is to research how the property market is moving in your area. Ask yourself:

• How much are similar properties going for in your neighbourhood?
• How long does it usually take to sell?
• Is the market going up or down?

Real estate portals and local agent databases can be excellent tools for comparing prices.

2. Have a professional valuation

Hiring an appraiser or real estate agent is a valuable investment. These experts can evaluate your property by considering factors such as:

• Square footage.
• Location.
• Condition of the property.
• Amenities and extras (such as swimming pool, terraces or garage).

A professional will give you an objective figure based on the market and the specific characteristics of your property.

3. Consider economic trends

Factors such as interest rates, inflation and housing demand directly influence property prices. Keep up to date with economic news and analyse how it could affect your target market.

4. Calculate the value per square metre

A simple way to start is to calculate the average value per square metre of similar properties. Divide the total price of those homes by their square footage and adjust for the unique characteristics of your property.

5. Take into account improvements and renovations

If you have made recent improvements, such as a kitchen renovation or an updated bathroom, these investments can increase the value of your property. However, it is important not to overestimate their impact; you will not always recoup 100% of the expense.

6. Beware of emotions

It is common for sellers to feel emotionally connected to their property and overvalue it. Remember that the ideal price should be based on objective data and not on your personal feelings towards the property.

7. Competitive pricing strategies

In some cases, setting a price slightly below the market average can generate more interest and trigger an ‘auction’ among buyers. Check with your real estate agent to see if this strategy might work for you.

8. Evaluate and adjust according to results

If your property does not generate interest within the first few weeks, consider adjusting the price. Review feedback from potential buyers and the real estate agent to identify if the initial price was too high.

Conclusion

Setting the ideal price for your property is a balance of data, strategy and flexibility. With proper research and the support of professionals, you can maximise the value of your property and sell it in the shortest possible time - remember that the right price not only benefits the seller, but also gives confidence to the buyer!