Updated: Jan 12
Why Pricing Strategy Is Important
Many people are thinking of selling their home today, however they are not sure the kind of price tag for their house. They are uncertain if the price tag is too low affecting the whole neighborhood valuation or too high which can be a turn off for most buyers.
Buyers these day are very sensitive to pricing. There are some houses remain unsold for many months as sellers have high expectation towards closing price. There are some houses have gotten multiple offers from many viewings due to the right pricing strategy. Pricing right doesnt mean always pricing low.
Pricing Right For Your Home is equally important to Marketing Your Home
Here are the top 3 most important points to take note of to achieve the best possible price.
- understand the market trends of the supply and demand -
We need to know whether our home is facing an upwards or downwards price trend. For instance, if you're staying in a HDB right now, hdb prices went up four to five percent. Why is that so? Because of the current covid situation which affected many foreign workers causing a delay in BTO constructions or new launch developers late in handing over the keys, many home buyers opt for resale HDB / Condo instead for a quicker buying process and thus leading to a surge in demand.
- opportunities and threats -
Are there any external factors that help or harm your property's price? Is there a new shopping mall or a new MRT station coming up in your estate because these are the factors that will surely help to increase the chances of selling at a higher price. Threats for example the BTO cluster nearby which is going to MOP in three months’ time, is it going to pose a threat to us? Definitely yes because more units will be up for sale around the area leading to more competition. The buyers will have more options and choices and they are in bargaining position.
- competition among units -
How many units are for sale in your cluster? How many four bedders competing units? how many five bedders are more renovated than our unit? How about the floor level of the competing units? These are crucial when it comes to selling your home. As long as we study our competition well enough, we will know how to price correctly to attract the right buyers at the right budget.
Just by understanding the above 3 points and applying them into your home-selling journey, you will know what's the highest price you can fetch for it!
Wish to sell but still not sure what pricing strategy to use?
If you have a plan in mind but not sure if it works well – do share with me or let me know.
I will do my best to assist you to make sure you look at your plan from multiple angles and ensure you have a very clear picture on what’s going on.
Drop me a HI! in whatsapp and share with me your top most concern in the property upgrading journey.
JJ Wong is the founder of MOPUpgraders.sg and has been a Property Wealth Planner in the real estate market for the past 6 years. He has helped many clients achieve their aspirations with the right financial planning and sound timeline planning. He is the man behind upgrading case studies of those who are holding on property under 10 years.