Why Overpricing Your Property Can Backfire When Selling
Selling a property is one of the biggest financial decisions in many people's lives. Naturally, everyone wants to achieve the best possible price. However, not every strategy leads to the desired result. A recent study by the iib Institute Dr. Hettenbach in Germany shows that an asking price set too high not only significantly extends the sales period but also reduces the achieved selling price. The study proves that properties listed too high are typically sold for only 84% of the originally achievable price.
The Mistake: Setting an Asking Price Too High from the Start
According to the study by the iib Institute Dr. Hettenbach, setting an asking price too high generally results in a significantly extended sales period. When a property is listed more than 20% above its actual market value, the average sales period rises to 372 days. In the end, however, the property is sold for only around 84% of the originally listed price. This means that the seller not only faces long waiting times but also a significant financial loss.
A high price results in many potential buyers avoiding the property because they perceive the price as unrealistic. Even if the price is reduced later, many buyers have already passed on the property or forgotten about it. Often, a long sales period is interpreted by buyers as an indication that something is wrong with the property, leading to even fewer offers.
The Flawed Salami Tactic: Cutting the Price by €100,000 Every Few Months
As mentioned earlier, setting an unrealistic selling price results in little to no demand for your property. This is the starting point.
Eventually, you might decide to lower the price – for example, by €50,000 or €100,000, depending on the property’s total value. Based on our experience, the first realization usually comes after 2-3 months. Your property is still priced slightly higher than comparable listings, but it now falls within a more acceptable price range. Despite this, you continue to receive minimal interest, especially in the current market conditions. Eventually, you reduce the price to the actual market value, only to find that six months have passed and you've already lowered the price twice.
Even after these price cuts, a serious buyer is still nowhere to be found. While you might get a few inquiries and schedule viewings, no one is seriously considering purchasing the property, even at the now realistic market price.
Why Overpricing Your Property Can Lower Your Selling Price
At some point, you’ll realize that another price reduction is necessary to encourage potential buyers to take action. This can be both costly and frustrating – an experience we want to help you avoid.
What Went Wrong?
Serious buyers are closely monitoring your listing. In today’s digital age, this is easy to track. Property portals often show how long a property has been on the market, or interested buyers will receive notifications if they’ve set up search alerts. The buyer thinks, "I knew it… another price drop. I’ll wait a bit longer – the price is bound to drop even further." Your property has become "burned" on the market.
The Right Pricing Strategy for a Successful Property Sale
The study by iib Institute Dr. Hettenbach clearly shows that a realistic asking price is crucial. Properties listed closer to their market value not only sell faster but also achieve a higher price. According to the study, properties listed at a realistic price typically sell after an average of 122 days and achieve around 96% of the market value.
But price alone is not always the deciding factor. The marketing strategy plays a crucial role in how quickly and for what price a property is sold. At Hoffmann Real Estate in Barcelona, we rely on a modern and thoughtful marketing strategy to increase the value of your property and secure the best selling price. The right marketing is essential for generating the highest price for your property.
Professional Marketing That Makes a Difference
At Hoffmann Real Estate in Barcelona, we offer a comprehensive marketing package that goes beyond traditional real estate listings. Our goal is to present your property in the best light and reach as many potential buyers as possible. To achieve this, we use a variety of innovative marketing tools to increase the value of your property and speed up the selling process:
● Matterport 360-Degree Virtual Tours: With Matterport technology, we enable potential buyers to explore your property from the comfort of their home through an interactive 360-degree tour. This increases interest and reduces unnecessary viewings, as buyers can get a detailed impression of the property beforehand.
● Drone Photography and Videos: Using drone shots, we showcase your property from unique perspectives. These stunning images and videos highlight the best features of your property and make it unforgettable for buyers. Drone shots are especially effective for larger estates or luxury properties.
● 4K Photos: Professional 4K photography ensures that your property is presented in the highest quality. These high-resolution images highlight your property’s best features and attract buyers looking for something special.
● Homestaging: Homestaging is an effective method for preparing properties for sale or rent. Through targeted design and decoration, spaces are presented attractively, highlighting their best features. Professional homestaging creates an inviting atmosphere that appeals to potential buyers or renters. It can also help reduce the time on the market and increase the sale price. Invest in homestaging to enhance the value of your property!
● Best Property Portals: We ensure that your property is listed on the best real estate platforms, both nationally and internationally. These include platforms like Idealista, Fotocasa, Habitaclia, Milanuncios, Kyero and LuxuryRealEstate – which provide high visibility and increase the chances of a quick sale.
Through this tailored marketing strategy, we ensure that your property not only sells quickly but also at a price that reflects its true value. With our long-standing experience in the real estate market and our extensive network, we can reach the right audience and present your property optimally.
What You Should Do Before Setting the Asking Price
1. Get a precise property valuation:
A professional valuation is essential to determine your property's true market value. An experienced real estate agent or appraiser can help you find the right price.
2. Avoid wishful pricing:
The price you wish for is not always the price the market is willing to pay. Make sure your asking price is realistic and market-driven.
3. Invest in professional marketing:
The best pricing strategy uses the right marketing tools. Trust experts like Hoffmann Real Estate in Barcelona who will showcase your property with state-of-the-art technologies and on the best platforms.
Conclusion: The Right Price and Marketing Strategy Determine Success
An overpriced property leads to a longer sales process and a lower final selling price. The combination of a realistic pricing strategy and outstanding marketing is the key to a fast and successful property sale. We rely on both: We determine the optimal market value of your property and use innovative marketing methods to achieve the best price.
With our many years of experience, the latest technologies such as Matterport 360-Degree Tours, drone imagery, 4K photos, and presence on the best real estate portals, we are your ideal partner to sell your property for the best price.
iib Institute Dr. Hettenbach Study (Germany):
- Price more than 20% above market value:
Average Sales Duration: 372 days
Final Sale Price: 84% of market value
- Price 10% above market value:
Average Sales Duration: 267 days
Final Sale Price: 92% of market value
- Price 5% above market value:
Average Sales Duration: 122 days
Final Sale Price: 96% of market value
Maximize Your Sale Price with a Proven Pricing Strategy
Are you looking to sell your property at the best possible price? Our time-tested pricing strategies ensure optimal results by tailoring the approach to your property.
1. Market-Value Starting Price
Setting the starting price at your property’s market value often attracts serious buyers quickly, leading to successful and efficient sale.
2. Below Market Value (Bidding Process)
Alternatively, a starting price below market value can generate higher demand. Through an open or sealed bidding process, competition among buyers drives the price up, often surpassing the market value.
Which Strategy Suits Your Property Best?
We offer personalized consultations to determine the ideal pricing strategy for your property. As part of our service, we include a comprehensive market value analysis to establish an accurate and realistic valuation.
Get Your Free Property Valuation Now!
With just a few clicks, you can easily and conveniently discover your property’s market value online:
