- How is the price of a house determined?
- How are market prices determined?
- How to adapt the price of your house to the market?
Beyond the objective criteria of the location and condition of a property, the price of it is also the meeting between supply and demand. The most beautiful house lost in the middle of the backcountry will find less takers than in the residential area of a city... That's why it is important when you set the price of your property to align with the market price.
Alignment with market prices for the sale of real estate
How is the price of a house determined?
The price of a house is determined by geographic location, year of construction, area and surrounding terrain, energy performance, heating, and overall condition of the property (Should only refresh the decoration or do important work?).
But even if your house meets all the positive criteria of rating and even more, if it has an Olympic-size pool and gold-plated faucets, if you want to sell it you will have to align yourself with the market price. While it offers high-end benefits, it will be worth more than a typical home but it will always depend on the state of the local real estate market.
This is especially true as buyers are generally well informed. Internet allows them to have access to many offers and compare them. If you overstate your propertyyou will have little chance of selling it...
How are market prices determined?
The potential buyer can consult a whole series indices and indicators published regularly by INSEE, the chamber of notaries, real estate agency networks. So he knows the price per square meter or the median price of a dwelling in a particular city or region and its variations over time.
The median price represents the "middle" of the market, ie for a similar house 50% of the transactions were concluded for a lower price and 50% for a higher price.
Market prices also depend on the law of supply and demand. In a residential area, quiet, close to all amenities and schools, prices will be pulled up. In a neighborhood deemed difficult prices are pulled down. And even your beautiful home with its Olympic-size pool and gold-plated faucets will be worth it.
How to adapt the price of your house to the market?
When you place an ad to sell your property, you announce a certain price. If you have correctly set the right price for your home and it is in line with the market, you have every chance of selling it. But if you have overvalued the value of your home, buyers will be reluctant, you will have to revise your price down. This one says to be sufficient (about 3 to 5%) to revive the interest of the purchasers.
By not adjusting the price of your home on the market you will cause a total lack of interest of potential buyers. They will quickly realize that your property is on sale for several weeks, several months. Their reaction will then be to say "distrust! If this house is still on sale for so long, it is because it must have many defects... "
But do not fall in the opposite excess too much to lower the selling price of your house. It would be a shame to sell at a discount while a simple adjustment of the price to align with the market price will have allowed you to conclude the transaction.
To go further: All the formalities for the sale of a house or an apartment.