There is an old saying – “buy low, sell high”, which is what everyone aims for.
This is especially true when you are hoping to transact a property. Every hopeful property transactor would wish to buy low and sell high, but is it really possible?
In today’s article, we look at tips to secure the best closing price.
Firstly, in anything and everything, especially if it involves money, you need to do market research.
Market research allows you to know which way the market is trending, price points, transaction history etc. The research will tell you if it is a buyer’s or seller’s market.
After doing your research, you can then price your home in a more accurate manner. If you overprice your home, then you risk having to drop the price if you do not get any offers.
This will result in your home taking a long time to sell.
If your listing price continues to drop over time, potential buyers might become sceptical, suggesting that there might be something wrong with the property.
How you price your property is a huge factor in determining fast you can sell your home and for how much.
Reasonably priced listings tend to get more enquiries and viewings and transact faster.
To find out the fair value of your home, you can also check out listings from various property portals for similar property types and see how much the other owners are asking.
However, for a more accurate value, you can engage a licenced property valuer to conduct an on-site valuation. This would be the most accurate way to price your property accurately.
If you are selling an HDB flat, you can find the most recent transacted prices of similar flats in the area to get an idea of how much you should be pricing your home (pro tip: HDB lets you check the recently transacted prices of resale flats sold within a 200-metre radius of the one you’re interested in).
For private properties, you can see the latest transactions within your development as well as surrounding comparable projects from the URA website. Here, you can find past transactions by individual developments, with all the relevant information such as date of sale, size, unit price, by psf, floor level etc.
The right time to sell
If it is a buyer’s market, meaning supply is more than demand, you are not likely to get the price you want, as buyers would be spoilt for choice.
In a buyer’s market, sellers often have to lower their expectations.
If it is a seller’s market, meaning there are more buyers than sellers, you are likely to get the price you are asking for.
Make improvements to your home
Once you have decided on a selling price, the next step is to make minor improvements to your home.
Selling your house with leaking taps, broken furniture and spoilt lightings is not going to work.
Potential buyers viewing your home would want to visualise themselves living there. So, ensure that everything is in good working order. Items not in working condition would most likely put off potential buyers or attract a much lower offer.
If your home is in need of repairs, potential buyers would definitely want to lower the price as they have to cater for the renovation costs.
Minor improvements such as a new coat of paint, cleanliness and small energy-efficient upgrades to the property are easy to fix and can increase the selling price without you having to spend a bomb.
Home staging is the process of dressing up a home to make it look stunning for potential buyers.
It is a marketing tactic that transforms a dark and dull space into a bright, breezy and liveable home. It is designed to showcase your home's best assets, impress potential buyers, and sell it quickly for the highest price.
As the saying goes, a picture can tell a thousand words.
Most potential buyers will try to negotiate down the selling price. You should already have in mind the minimum selling price and reject those who go way below what you are comfortable with.
Do not be swayed by low-ball offers, even if you are in a hurry to sell.
If you have several offers on the table, you can create a “bidding war”. Let the potential buyers know that you have multiple offers and ask them for their highest and best offer.
If the buyer really likes your property, you may just get more than your listing price.
Have A Question? Feel Free To Comment Below.
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Users are given the option to (1) list their properties for 30-day by themselves at no cost, (2) avail of a Flat Fee Package, or (3) engage Mogul's Property Concierge to handle all the work involved in the resale process.
To learn more about this service, click here.