Determining a price for your property requires considering multiple aspects. The quoted price will significantly influence how fast it sells and how much profit you make from the sale. Therefore, it would be advisable to take some time, consider the following aspects, do some research on these, talk to some people, and then come up with the final price.
Consider your costs and the circle rate
The first step is to calculate and sum up the amount you have spent on acquiring and maintaining your property. You do not want to incur a loss, even if you are conducting a distress sale. Hence, total up your costs such as the original property purchase price, maintenance charges, remodelling expenses, and brokerage, among others. To read more on the different types of expenses you should consider for estimating your returns on investment, click here.
Also, check out the Ready Reckoner Rate (RRR) or circle rate for your area. These are the minimum property prices designated by the State government, below which sales transaction cannot take place, so make sure your final price is above this value.
Conduct a comparative property analysis
Compare the final selling price and listing price of similar properties in the area. This will give you a good starting point for setting up the price. While doing so, make sure that the comparable properties are of a similar configuration, type and size (1 BHK or 2 BHK, builder floors or high rise, and size in sq ft) to yours, are close by, and are roughly the same age as your property (five or eight years old, etc.).
For instance, if your property is a 2 BHK unit in a high-rise housing society, then you should not take a 2 BHK in a builder floor property as the comparable property, even though it may be located close by. They should also have been listed within the past two to three months since price trends keep changing.
To find the average price (per sq ft) of properties across various localities in your city, you can check out the ‘property price trends’ section of 99acres.com or the ‘Insite Report’ section of Knowledge Centre.
Consider essential variables
Look at crucial variables that can affect prices, such as the neighbourhood, approach area, age of your property, amenities (clubhouse, car parking, among others), premium features (modular kitchen, east-facing, top-floor, etc.), connectivity (is it towards the centre of the city or the periphery?), proximity to employment hubs, and social amenities (are well-established schools, hospitals, etc. nearby?).
Beyond these, it is advisable to study the broader economic situation (is the economy in a slowdown?) and the city-level real estate scenario (how is the residential market performing?). You can find such information on the web and more particularly on the Knowledge Centre section of 99acres.com. To check this out, click here.
Try to remove emotions from the equation
Maybe you have spent some time living in your property and have gotten attached to it. This can affect your ability to set a price for your property objectively. It would be beneficial to think like a buyer in this case and assess the property value in an unbiased manner to come up with a realistic price.
Be open to change
Perhaps you have set the price too high for your property and are not getting the response you had expected. In this case, after some careful reassessment, it is completely fine to reset the price to adjust according to the demand.
Once in talks with buyers, it is beneficial to be flexible and open to negotiations. You can, upon assessments of your costs, try to accommodate a four to six percent discount on the price in order to close a deal.
Consult your broker or consider a professional assessment
If you have hired a real estate broker for the deal, consult him/her about the pricing. Area-based brokers know the on-ground reality and can offer you valuable advice to set the price. You can also consider having a professional property appraisal done to come up at a price. To read more about property appraisal, click here.