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With a marked slowdown in recent months, the real estate market is facing gloomy days. The shrinking pool of buyers, exacerbated by increased barriers to obtaining credit, makes it difficult to sell properties. So, how do you effectively adjust the selling price in a declining market?
Key to the sale: a fair and up-to-date estimate
Needless to say, the right price is crucial to the completion of a sale. The mistake is often made of maintaining an idealized price, ignoring the possible depreciation of the market. Doing so, especially in a declining market, could not only lengthen the time to sell but also potentially force an even greater price reduction in the future.
Les facteurs influant sur les marchés immobiliers en 2023
Rising credit rates
Mainly affecting first-time buyers and investors.
The Pandemic and Teleworking
Affecting the appeal of expensive metropolises.
Coastal regions, appealing to older demographics and less sensitive to rising credit rates, so far appear to have been relatively unaffected by the market downturn.
Naviguer dans le prix : Les travaux à considérer
It is essential to include any construction costs in the selling price. While carrying out major works is not recommended (the return on investment is often negative on sale), it makes sense to precisely quantify these costs and reduce the price accordingly.
Anticipation and pricing strategy
While buyers are betting on a future price decline, it is prudent to slightly undervalue the current market, especially if a quick sale is needed. This proactive approach can make your property more attractive in a market where purchase budgets are constantly shrinking due to rising interest rates.
Strategically manage price reduction
Opt for one significant drop
A price reduction must be well thought out and sufficiently impactful.
Anticipation and pricing strategy
In this challenging real estate environment, the key for sellers lies in a well-thought-out pricing strategy, a realistic valuation of the property, and active communication with real estate agents. Mastering these elements can not only safeguard the value of the property but also facilitate a sale within a reasonable time.
Posted on 05/10/2023 by
Cyril POTTIER
Entrepreneur and founder of the agency GABRIEL FRANCE, my career began in the field of accounting, but my passion for real estate led me to this captivating adventure. With GABRIEL FRANCE, we bring our expertise to every stage of real estate, from purchase to sale, including rental management. Through each transaction, our goal is simple: to ensure your satisfaction.
