Selling Your Home? Price It Right

Making the decision to sell plots in India or residential property in India is probably the easiest step in the entire home selling process. The real trouble starts once you get down to put the right price tag. A price that is too high will turn away potential buyers, while a price that is too low will invite more trouble than it is worth handling. Nevertheless, you can easily strike the right chord by understanding how the different approaches for selling your resale apartment in India work.

Setting the bar too high: You can probably try this strategy if your villa in India is in a really posh neighbourhood. Since there will be fewer homes available in the market in that locality, the buyers will have little to compare with. In such situations, with the help of your realtor, you may be able to get away with as much as 5-10% higher price. Also, quoting a higher price can invite higher initial quotes from potential buyers. Since the entire game is of negotiations, the end result will still be in your favour.

Attract the bees: There are several people who advocate the theory of under-pricing the home by 5-10%. The experts suggest that since buyers are always looking for a good bargain, giving them a good deal at a lower price than the market is sure to attract several bidding offers. This strategy is also the optimum for those looking for a quick sale. However, from the seller's point of view, to quote low appears to be an opportunity loss.

Understanding the psyche behind pricing: The real estate market relies heavily on market sentiments. To understand how to price the resale apartment in India right, it is imperative that you comprehend the driving force behind making purchase decisions. According to research conducted in this field, it has been found that buyers tend to hold or anchor on to the first piece of information that is made available to them about the property. All further decisions are made around this pivotal factor. This behavioural trait is termed as 'anchoring'.

Based on this trait, if the buyer comes across an overpriced home, chances are that they will judge the house with more focus towards the good attributes. They feel that the buyer has something better to offer thus, the price hike. While most realtors tend to believe in this theory it has, much too often, been seen that they advise under-pricing instead. This is because a lower price would ultimately result in a closed deal faster.

Market conditions: There are certain other parameters that can help you decide the price. The first is your timeframe for closing the deal. In a buyer's market, the seller can achieve this by quoting lower than the average price to get a quick sale. While the purchase of homes is a case of demand and supply, it has been seen that the winter months tend to be slower for purchase. Most people in India tend to purchase their homes close to the auspicious dates of the spring months. The slash in the repo rate by the RBI and the lowering of bank interest rates on home financing allows more people to turn into potential buyers.

In the end, before you actually end up fixing a price tag to your home, get a property valuation done. This will give you a comparable figure against which to base your decisions and enable you to get a reasonable profit when selling your residential project in India.