Key factors in setting the selling price of your home
How much is your house worth and do you know its real market value? We show you the most important factors that you should take into account to avoid surprises.
What you need to do to set an appropriate selling price
Property valuation is a key step in the sales process. One of the first and most critical, as it requires a great deal of technical knowledge. For this reason, our advice is always to seek advice from at least one expert.
Choosing a good real estate agent is very important, as good advice will help you set a realistic price that will help you sell sooner and better. Eduard Solé, COO of MonapartHe explains it in a simple sentence, "the really important thing about data is knowing how to interpret it, and you don't learn that in a day".
The real estate agent, in addition to the valuation, will be in charge of two essential processes in order to find the right selling price:
- It will carry out an objective and professional analysis of the market.
- It will study the state of supply and demand in the area at the time of sale.
These two processes, together with the appraisal, complete the minimum factors you need to avoid mismatches and inaccuracies when deciding the sale value of the property.
Expert advice from a real estate agent is the smartest option.
Is it advisable to go "short"?
According to this article from earlier this year in Idealista NewsIn the near future, it seems that there will be a balance between supply and demand, which together with the increase in interest rates, will stabilise the Spanish property market during 2023.
As a consequence of the war between Russia and Ukraine, the energy crisis, the increase in raw materials and the rise in inflation, we have moved from a market that favoured the position of the seller (he had more power to define prices), towards a more balanced market or even one that benefits the buyers. How? They will have more bargaining power, so let's be prepared to face downward negotiations.
According to these forecastsprices will cool, but remain stable. Analysts do not believe that a generalised fall in the large markets (Barcelona, Madrid, Malaga) is possible, but with less demand, it is plausible to think that it will be a little more difficult to close deals.
When negotiating the final sale price with the buyer, there will be other elements that affect the negotiation:
- Whether new or second-hand;
- whether it needs refurbishment or is brand new;
- if the sale is through a private individual or real estate agency;
- the area, neighbourhood or street in the city where the property is located.
According to the Euroval appraisal companyWhen negotiating the sale price of a property, buyers in Spain get an average discount of 9%. Although there are maximums above 20% in cities such as Malaga and Vitoria-Gasteiz.
It is very common for the emotional ties that bind us to our property to influence us and lead us to overestimate its value when putting it up for sale.
(Negotiation of the price of the property for sale)
The real estate market in 2023, will prices fall?
2022 ended up being a very positive year for sales in the real estate market, but the experts predict a decline in demand for housing as a consequence of last year's upward price trend.
The ING Online BankThe European Commission, he says, is confident that price growth is likely to slow down. "until 11GDP3T in 2023, which means that nominal price growth will not be able to keep pace with inflation, with an expected rate in 2023 of 4.41GDP3T". What does this mean? That real price growth will be negative by 31TP3Q or 41TP3Q.
It's nothing to panic about... Sometimes, real estate predictions are too much like weather forecasts. Beatriz Amigot, economics editor of the newspaper Expansión, talks about experts predicting falls of up to 10%. But when talking about selling prices, we see the huge lack of consensus. Here are the details.
Conclusions:
- There will be a slowdown in sales compared to 2022.
- There is a lack of clarity on what will happen to prices in 2023.
- We must be patient and attentive to internal and external market variables that may affect them.
Our final thought: pricing plays an extremely important role, which is why expert advice from a real estate agent is the smartest option. It is the safest, most lucrative, most comfortable and least stressful.
If you are thinking of selling your house, you only have to do ONE thing: fill in the following form this form because we take care of EVERYTHING else. Easy, isn't it?
