If you are thinking to sell your property, one of the first things to do is identify its value: the first part of the article.
You decide to sell your property… What are your first thoughts?
First of all, you remind yourself of all the money you invested in your house. This is precisely why you are considering a 20-30% price markup fair: everybody wants to earn when selling something.
Have you ever thought that from 2008 to today, the values of every property typology have decreased of a 5%/year? This means also that, in 2020, this decrease would have exceeded the 50% threshold.
So, if the value of your property is still decreasing, why should the market recognize it as a higher value? Does not this reasoning seem strange to you?
Then you think that your property is unique…
“No one has ever realized a home like mine…“
“Nobody has a park-like mine…“
Even if offered, I would never purchase my neighbour’s farmhouse…
Everything you said is perfectly right because you chose that farmhouse and not the others! But, on the other hand, we are not looking for you: we are now looking for a client who may fall in love with your property.
Several statistical analyses establish that the surplus value given by the owner to his/her property is of about 20-50%… why?
Because every one of us who purchased a property perfectly knows all the sacrifices done for it, the costs of the renovation or maintenance, how many days were spent arranging every single detail both inside and outside…
“In that home, we had beautiful days with our parents, children, husbands, wives, and friends…“
There we celebrated our marriage, and birthdays… saw football matches, and films… so… we lived there!
All these considerations bring you to give to your property a value that nobody will do unless you sell it to your wife or children. Now, you should have understood what subjective value means.
Let’s keep reading.
“I met my cousin and uncle, they said to me that, for my property, they would have chosen the same price I did.“
Have you ever thought to ask your cousin and uncle how to cure a serious disease?… Reflect on it.
I met my surveyor: he/she estimated my property as 25% less than the estimate I shared with my cousin and uncle.
Here you start understanding everything better. Indeed, a professional has given you some objective suggestions that have nothing to do with the plus-value we usually give to our own properties.
“I contacted two famous agencies that sell to an international clientele: the first one has come, they asked me about the value I have thought for my home. When I said it to them, they answered me that maybe they could have some Russian clients able to offer me a higher price but, in order to sell to them, we should have invested together in the advertisement. They are really good!“
The second agency is named Great Estate and its agents do not agree with me about the value of my home… they just want to sell my property! Are you serious??? However, they gave me a professional property estimate. They also said to me that, if I accept to sign an exclusive assignment for sale with them and establish a fair price for my house, they will have afforded the advertising investment by themselves.
I still may quote tons of examples, but I hope that the two I am going to propose to you in the second part of this article will be sufficient to allow you to take the right decision.
Which will be these two examples mentioned by our CEO? Just click here.