If you have a look at the houses for sale in Cumbre del Sol, you’ll see a high quality and an exceptional setting.
In fact, people who own a house in this area know that, as they say in the trade, the area is on the up.
The market on this part of the coast is always dynamic, as there are always a large number of transactions.
However, if you are about to put your house on the market, you’ll be facing a series of risks related to overvaluing your property. Want to know what these are?
Why is it a bad idea to overvalue a property?
It’s obvious that a house in Cumbre del Sol is highly sought-after. This is the case at any time of the year and regardless of the economic conditions. Its vicinity to the sea, wonderful facilities, security and building quality are points in its favour that appeal to purchasers. This means that prices move within certain margins that are always affected by demand.
But do you think it is a good strategy to value your house above the average price? The answer is a resounding no. We’ll tell you why.
You’ll lose the advantage of a feeling of urgency
When you decide on a price in excess of the average of similar properties, you are losing the advantage of urgency from the word go. Potential purchasers will know that you’re not in a hurry to sell. In addition, with time they’ll be able to find properties that are the same size, quality and in the same location. If they find a cheaper option than yours, it’s obvious they’ll go for it.
You are showing a lack of awareness of the property market
However much you might think that it is you who is choosing the price, when it comes down to it, the market decides. You can set a particular price on your villa, apartment or chalet, however, if the market does not favour the transaction, you’ll have huge problems when it comes to agreeing on a sale. At the end of the day, the decision is a joint one between you and the purchaser based on the supply and demand for properties with similar characteristics.
You’ll be intimidating potential purchasers
Yes, although it may seem strange, there are many potential purchasers who are intimidated by overpricing. That means they prefer not to ask for information about the house, either because they don’t want to negotiate or just because they don’t want to spend more money than they have to. Even if the property is unbeatable, nobody wants to pay a price that they don’t feel is fair.
You’ll be increasing your chances of delaying the sale
It’s possible that your property is irresistibly attractive, maybe you have a magnificent pool set in enormous, leafy gardens. It could be that the property is newly renovated and equipped with the highest quality materials and the latest technology. However, one of the first things that potential purchasers will be looking at is the cost. If this exceeds their budget, they won’t be looking closely at the information available. This is how a sale can be delayed by months or even years.
You’ll be increasing the risk of constant price drops
Bear in mind that, if supply and demand are not in line, it’ll be really hard, if not impossible to sell your property. If nobody is prepared to pay the price you are asking for, you have two options: lower it or remove the property from the market. If you’re not prepared to opt for the latter option and still want to sell, you’ll have to reduce the price.
However, repeated reductions in price give a bad impression. Purchasers might suspect that there is a hidden problem with the sale and that your property is not of the quality it appears. For this reason, the best decision you can take is to choose an average or below-average price from the beginning.
Avoiding an overinflated price doesn’t mean lower profits
Although it may seem strange, in most cases, not overly inflating the price of your property actually makes you money. In fact, there are two benefits; not only do you get more money, but you get it sooner. As we’ve already said, if you overvalue it, it could be that your property never sells or you’ll have to reduce the price.
The best thing you can do to be sure of your price is to use the services of an estate agent in Cumbre del Sol. In this way, you’ll be able to work with agents who will guide you through the whole process. They will tell you what indicators to choose to select the right price, in line with the market and the best sales options. If you want more information about property sales and purchases in Cumbre del Sol, get in touch with us.