Contents
The right purchase price leads to success
The right purchase price leads to success
Our European network EREN has conducted an international study on the impact of the correct valuation of a property on marketing time and sales success. This was based on transaction data from all member companies in the period 2010 - 2021.
When owners decide to sell their property, the important question of the purchase price always arises at the beginning of this process. It is in the nature of things that the seller wants to achieve as high a price as possible and often insists on an offer price that is too high, contrary to the advice of his real estate agent. But this can have disadvantages in the long run.
The study shows that a too high purchase price leads not only to a significantly longer marketing time, but also to significantly higher discounts on average! The initially demanded (too high) price is almost never achieved. Especially in the luxury segment, many prospective buyers observe the market over a longer period of time. If a property is on the market for a very long time, a negative dynamic is created which causes the interest of potential buyers to wane. In many cases, this forces the owner to grant more and more price reductions over time. Frequently, the actual purchase price achieved is then even lower than the price originally recommended by the expert!
Conclusion: An offer price that is set too high causes long marketing times (during which the seller must bear the costs of maintaining the property) as well as high discounts on the purchase price. It is therefore advisable to rely on the professional valuation of an expert at the beginning of this process - even if this may be somewhat lower than the subjectively desired purchase price.
