How to Set the Right Asking Price in Real Estate Valuation

Setting the right asking price is one of the most important factors when selling a property in the UAE. Pricing a property too high can lead it to sit on the market for months without garnering much interest while underpricing leaves money on the table. Utilising professional real estate valuation techniques, having patience, and pricing competitively against comparable properties can help real estate sellers maximise their sale price in today’s market. Being flexible with price adjustments while staying firm on the property’s core value is also key when navigating buyer negotiations.

• Research sales trends in your area

Study listings and prices per square foot of competitors near your property. Are values flat, rising, or declining? How long are homes sitting before going under contract? Tailor pricing is based on this intelligence to attract buyers of real estate. Keeping abreast of the latest market shifts and averages for days on the market guides intelligent listing price adjustments.
You can also drive around the neighbourhood and look for “Sale Pending” signs. Take notes on amenities and characteristics comparable to your property. Though not perfect indicators, these data points taken together help real estate sellers gauge the market. Direct area canvassing reveals real-time sales data not yet reflected on listing sites.

• Consider upgrades to increase home value

Some upgrades, like kitchen and bath remodels, provide a strong return on investment, while simpler fixes like painting or landscaping are cheaper ways to boost curb appeal. Evaluate the cost and benefit of potential improvements that bring more value than they cost. Cosmetic refreshes make a home show better online and in person, translating to faster sales and higher prices.
Leave room in your asking price to negotiate on repairs requested by buyers. But pricing too low can backfire, signalling issues that don’t exist or resulting in more requests from buyers of real estate than may be reasonable. Skillfully anchor pricing to reflect a property’s strengths while leaving headroom for good-faith bargaining.

• Don’t underestimate small details

When prepping a property for sale, going beyond surface-level staging to attend to minor repairs and upgrades can surprisingly impact the sale price. Touching up scuffed walls, updating faded light fixtures, repairing sticky doors—these inexpensive fixes add up by communicating care and pride of ownership to buyers.

Similarly, marketing assets like professional photography, 3D scans, drone footage, and floor plans cost little compared to their impact on potential buyers perusing online listings. Unique visuals that spot a home’s strengths inspire more clicks, showings, and emotional engagement. Leaving buyers with the impression that “no detail was overlooked” both subconsciously signals a well-cared-for home as well as surface-level pride in the sales process itself. Don’t leave easy money on the table for the little things when first impressions matter.

• Patience is key in the market

Real estate pricing doesn’t follow neat formulas. A property is ultimately worth what buyers of real estate are willing to pay. Savvy sellers let the market speak by monitoring online views, agent feedback, and actual showings generated. Resist overreacting to temporary lulls or jumps; let time and data patterns inform strategy.

If you receive no offers after several weeks, revisit your comparable. You may be overpriced compared to other homes on the market. Or perhaps fewer buyers of real estate are house hunting during holidays like Ramadan or in the summer months? Consider temporarily lowering the price to spur viewings and offers. Recalibrating the asking price relative to current competition kickstarts stalled interest.

On the other hand, multiple offers or bids above asking signal you may be underpriced and can negotiate upward or accept the top bid. While waiting can test one’s patience, letting the market respond leads to the best outcome. Leverage bidding war dynamics without overplaying your hand to maximise the sale price.

• Weigh Multiple Offer Scenarios

In competitive sell property in UAE real estate markets, bidding wars break out for desirable listings, testing a seller’s mettle to get the optimal sales price. If you luck out with multiple offers, resist the temptation to immediately accept the highest bid. Assess aspects like proof of funds, contingencies, and closing dates, not just the dollar amount.

Carefully weigh factors like contingencies, closing timelines, and buyer financing. A modestly lower cash offer with a short closing period may be more favourable than a higher bid requiring you to continue carrying costs if buyer financing falls through. Experienced real estate professionals aid immensely in navigating high-stakes offer scenarios, including advising if additional buyer escalations are warranted. Don’t leave money on the table, but focus on the strongest overall package. Leverage agent expertise when weighing competing offers to optimise deal terms and price.

• Consider negotiating costs

One common buyer request in offer negotiations is for the seller of real estate to pay a portion of closing costs, which encompass fees like title searches, insurance, loan origination, recording, and more. In the UAE, these often range from 2% to 5% of the purchase price. Instead of reducing your asking price, consider concessions like offering to pay 2% to 3% of closing costs instead of dropping the sales price. This still nets more money in the end while increasing affordability for real estate buyers. Such creative negotiation preserves the value you’ve established. Surface win-wins that bridge buyer needs with your target proceeds.

Conclusion

Nailing the right asking price in a UAE real estate sale is an art and a science. While pro-assessments, neighbourhood comps, and market data lay the analytical groundwork, real-world conditions also mean patience and creativity come into play. Assessing buyer feedback and offering scenarios with an experienced real estate advisor like Deja Vu Real Estate maximises your chances of not leaving money on the table. Adapt intelligently to shifting market dynamics while upholding a property’s inherent value.

Remember, a property’s value is what the market says it is here and now. With the right prep and pricing approach tailored to current dynamics, you can successfully sell property in the UAE near the top of its potential. Stick to sound principles while flexing tactics to optimise deal terms and sales prices.