Real estate Pakistan has been growing at a rapid pace over the past few decades. Projects that exceed their competitors in grandeur and class are appearing on the horizon by the day. Real estate sector has quickly been recognized as one of the most potent areas for financial investment in Pakistan.
With the importance and prominence of this industry increasing by the day; people are looking to benefit from it. The scope of investment has far moved on from the concept that only experienced businessmen could handle it. In many areas; real estate is becoming a household term whenever financial investment is discussed. In this wake of greater potential being seen than ever before; many people have been putting up their property for sale on the real estate market.
One of the most important factor in property for sale is the price that is set by the seller. This set price can go a long way in determining the exposure and investment offers this property would get on the market. if the price is fair; it is generally all well and good, however if you are not confirming to people’s and the market’s expectations; the selling process is going to be extremely difficult.
Following are some of the ways you can use to calibrate the pricing of your house and make it fair so that you can attract maximum investors.
Checking the local market:
One of the starters of setting your home’s price is to look around in the local area. Your property’s surroundings are a great way to get a rough estimate about what the property is worth. This estimate can be quite accurate if you are located in a gated community. There are a multitude of factors that go into pricing a property fairly. A lot of these variables are found within the perception and observation of a neighborhood.
Take into considerable the commercial facilities that come alongside the residential sector of a neighborhood. It will be appreciating for the property to have surrounding facilities that are convenient for the residents. Moreover the overall ambiance of the area can also help to appreciate or depreciate the value of a house. Consider an area where there are tons of parks, greenery, focus on natural topography, wide and well built roads versus an area that is barren with poor waste and water management systems, the roads are filled with potholes and so on. Comparatively the better the area appears and the higher class it exudes; the higher the property value is perceived. You can use the pricings of houses for sale in your neighborhood as an estimate to what a fair price on the house should be. The security of this area also matters equally in determining the general values of property in the surroundings.
Of course properties are divided into different sizes, construction costs and aesthetics differ from each other similarly the age and condition become a factor; however if you are in a well planned society or a gated community residence; it is usually easy to find a house that is the same area as yours and has similar aesthetic and construction to compare with.
Try to keep emotions out of business:
For single time sellers or investors it is easy to get emotional or extremely attached to one or more of their properties. Especially for those people who are selling a property they have lived in; it is easy to think of adding in a couple more lacs on the deal however it will become a huge hurdle for selling the property. One has to leave emotions at the doorstep while trying to sell the property.
It is best to keep level headed and even consult an outside resource like a real estate broker or an agent to help you estimate the price of your house for sale. One must remove all emotions from real estate dealing due to them being the biggest obstacle in your way.
Review the market situation:
Sometimes you might have put up a price comparing to the reputation of the area and from what you find around neighborhood and it might be seem fair to you; however it is very easy to miss out one variable: the situation of the real estate market.
Real estate industry; like stock market is subject to change over tie. However the changing values doesn’t happen overnight as in stocks; over the matter of weeks and months the values of properties can go up and down due to a multitude of factors. So the price that you might have set and determined as fair might not fit the market standards after a few months since the house has been listed. This house might seem too low of a price to provide you a benefit or become overpriced to the adjusted standards. Such price tags will ward off potential investors. That is why it is important to keep the market values and trends in check if the price tag is unsuitable to the market.
You can use this aspect to a great advantage. Market situation can also put the neighborhood in which your property is located in at a great advantage. There might be an upcoming extension or nearby project that increases the value of properties within this neighborhood. In such case your property can be bumped up in its price taking into account the newfound potential of properties in the locality.
Hiring a real estate agent;
If you are too caught up in life to provide time to the above given suggestions and have the affordability; hire a real estate agent. Referring to a good real estate agent is almost always the answer to problems regarding real estate industry. One can take great benefit from these professionals. When it comes to real estate matters a qualified and authentic agent is the jack of all trades in this field. Packed with knowledge of market, experience in dealing alongside the expert level negotiation and networking skills they have developed will greatly help you in any situation. An expert opinion can never be a bad thing in the vast world of real estate
Similar to all their other skillful abilities; real estate agents can easily estimate the price of a house that is to be put up for sale. They have the knowledge of both the markets changes and potential prices of houses. They can help lay out an extensive strategy tailored to your needs that can provide you the maximum return on benefits. Sure real estate agents will take a sum of property’s sale as their commission on finalizing the deal (most common way for real estate agents to earn) but the deals they can get you are also ideal.
Note on pricing of property:
It should be noted that pricing isn’t a onetime set value; it is subject to change. Negotiation is another big part of the real estate industry. For example you might get a number of buyers in which you chose the one offering you the highest sum; during negotiation the buyer might want you to lower the price of the house at their convenience and so on. Price is naturally subject to change on the market so do not hesitate to change the numbers if it is in your best interest as well.
There is not a single answer to what should a property be priced as. As a general recommendation you should stick to the tips given above however in special cases you might want to set a price tag suitable to your needs. For example take the situation of a home seller who is moving abroad and is in a hurry to sell their property. Such individuals might have to set a lower sale price on their house to attract the maximum number of buyers as soon as possible. Due to the constraint of time lowering the price of their property is the best option. In other cases you might want a higher price due to some special feature or attraction of the property; depending upon its proximity the quality of life and other factors that come with this specific property and that would too be fair.
Pricing property during sale can include a lot of variables and can be puzzling for people. However if you are going to look to the property’s surroundings and neighborhood, have a keen eye on the market’s changing situation as well as keeping your emotions out of the equation you can quickly get an estimate of what is a fair price. Of course; there can be special cases and exceptions where pricing a property above or below the market value is benefitting the seller.
If you are a busy individual or cannot rap your head around real estate’s working; hiring a real estate agent is a one stop service to your worries. We hope this article was helpful for you.