The importance of setting the right asking price for a property
Setting an accurate property asking price prevents listings from stagnating on the market, aligns seller expectations with real market behaviour, and establishes clear negotiation margins for faster deals. CASAFARI’s property valuation tool compares similar properties in the same location to generate a data-backed valuation report in minutes, helping estate agents position listings effectively.
1. The appropriate asking price makes the property sell faster
Imagine that you have a property to sell, but it is currently overpriced. The primary consequence of mispricing real estate is that many potential buyers will skip booking viewings.
If the asking price is too high relative to other available properties, buyers will look elsewhere rather than attempt to negotiate. Conversely, if the price is too low, potential buyers may suspect there is something wrong with the property.
After remaining on the market for an extended period, the listing begins to be perceived as problematic, making it harder to sell. You may have experienced a similar situation when searching for property on behalf of a client.
When you run an online property valuation and set the appropriate asking price for a property, you position it accordingly to the market. Hence, it will start to be seen as a hot offer, attracting more visitors, making it more competitive and increasing the chances of a faster sale.
New: HOT OFFER labels and scores for the best market opportunities
2. It helps settle expectations about a deal
Whether it’s for emotional ties to the property or to increase the ROI of their business, more often than not the client will want to sell their property for the highest price possible.
When you have a property valuation report that allows you to show your client which factors were taken into consideration when deciding for the asking price of a property and how the market is at the moment, you are able to settle their expectations. From that moment on, their mindset will start to work with actual figures, instead of wishful thinking.
3. Helps strategise for a potential negotiation
Another point about having a clear understanding of the asking price of a property is being able to define which margin you have to negotiate. This works for many situations.
When it comes to changing the price of a listing, if the property is overpriced, by finding the appropriate pricing you know exactly how much you should try to decrease when negotiating with the seller client. On the other hand, if the property is underpriced, it helps you show the owner how much they are losing by not increasing the asking price.
You can also add a percentage of the total value to the asking price, that will serve as your negotiation margin. This way, if a homebuyer is interested in the property, you already have in mind how much you can decrease the price in order to seal the deal faster.
There will be no need to ask for your client’s permission, speeding up the sale process, while still making sure your client is getting an amount out of the deal that’s appropriate for the property. And the same goes for rent, of course.
Property valuation report: how to find the appropriate pricing for a property
There are a lot of factors to consider when defining the right asking price for a property. For example, you have to think about how good the location is, how well maintained is the property, how is the demand for real estate such as the one you have to offer on the local market and much more.
This is why using a property valuation calculator or reviewing our comparables and valuation API documentation can save estate agents considerable time and effort.
CASAFARI’s Property Valuation, our property valuation tool, compares your property to others in the same location and with similar characteristics to find the most accurate asking price possible. This is particularly relevant to make sure you’re basing your pricing strategy on what’s actually going on in the market, instead of in assumptions or in past experiences.
Property valuation: easily find the competitors of your properties
But, more than that, our property valuation report also provides you with information that you can use to justify to the owner your choice for a specific asking price, as well as to explain to them how the market is behaving at the moment for properties such as the one you’re selling.
The report will show you:
- A suggestion of asking price for sale or rent;
- An analysis of similar properties;
- The average time spent on the market for properties such the one you’re selling;
- Points of interest around the property that might affect the pricing;
- Which are the competitor properties on the market and for how much they’re being sold or rented;
- Graphs showing the evolution of prices and price distribution for properties such as yours.
All of it is done in a few minutes and can be accessed through a PDF or a smartlink, making it easy to create a property valuation report and share it with clients.
New customisation options for your property valuation report
Rather than spending hours searching for the information required for a pricing strategy, technology can streamline the entire process. Sign in to use CASAFARI’s property valuation tool and support your sales with data-backed asking prices.
Frequently asked questions
What happens when a property’s asking price is set too high or too low?
When an asking price is set too high, potential buyers often skip booking viewings, causing the property to stagnate on the market and leading buyers to perceive it as problematic. Conversely, setting an asking price too low may make prospective buyers suspect hidden defects or result in the owner selling below true market value.
How does a property valuation report help manage a seller client’s expectations?
A valuation report outlines the specific market factors and comparable properties used to establish the suggested asking price. Presenting these concrete data points helps transition the client’s mindset from emotional attachment or wishful thinking to realistic market figures.
How does knowing the right asking price help estate agents during negotiations?
Accurate pricing enables agents to define a clear, deliberate negotiation margin in advance. This allows the agent to lower the asking price within an agreed percentage range to close a transaction faster, without needing repeated permission from the owner at every stage.
What information is included in a CASAFARI property valuation report?
A CASAFARI valuation report includes a suggested asking price for sale or rent, a comparative market analysis, average time on market, and local points of interest. It also displays active competitor listings alongside their asking prices, supported by historical price evolution and distribution charts.
Does CASAFARI include closing prices as well as asking prices in its valuation reports?
Yes, alongside asking prices indexed from active market listings, CASAFARI incorporates closing prices from official public records, notaries, and client-reported transactions. This allows real estate professionals to compare current active market supply with actual completed sales data.