If you put a high sale price, you can “burn your house”!
Perhaps the owner of the article has surprised you, or perhaps not because you already knew it, most first-time or inexperienced sellers want to sell their house for much more price than it cost them to buy it, and it’s not a good option.
It is not a good option, because it is not in line with the current real estate market situation, in good times or at the time of the real estate bubble they would surely have sold it, even for a higher price! But nowadays, the only thing that can be achieved by doing the above is “burning the house”, as it is commonly known in real estate slang when a house is not for sale and has been on the property market for a long time.
If you put a high price and then slowly start lowering it, and keep going down and down little by little … potential buyers will notice. And when a house is on the market for a long time due solely to the price premium, buyers are beginning to wonder why. And you will achieve that the house is not attractive, because they think that it has some hidden vice or that it is a bad investment, and that is why nobody buys it.
Therefore, it is essential to establish a realistic price, so we are going to provide you with three basic tips so that you do not “burn your house” in the first sale attempt you make:
1- Be honest with yourself and then make a real assessment. It is worth doing a little market research, and looking at what prices similar houses to yours have been sold for in a reasonable time, what were the original prices of those houses and, if possible, how long they were sold.
2- Get in contact with a real estate agent, let yourself be advised by one of their real estate agents, among many compelling reasons, because they know the market and want to sell your house as quickly as possible for the highest possible price. And let them advise you, that they value the price they would put on your house. You all win!
3- Evaluate if you prefer to sell it now for less price than you wanted, or sell it in six months or even longer, for the price you ask, the time it takes to sell the houses is money that you stop earning, or that you lose in mortgage payments, or in general expenses that the house generates, that you must be paying obligatorily while the house is not sold.
Better not “burn your house” and lose money, contact Hormicasa, your trustworthy real estate agent in Lanzarote.
