How to know if you’re getting a fair price for your property


How to know if you’re getting a fair price for your property

Property Pricing: Too High or Too Low

As anybody who's shopped for property over the years can tell you, property pricing can be unpredictable. Only a few decades ago, the cost of a house was around five times the average salary. In some cases, it was even less. Now, it’s more than ten times the average salary. This has made getting a loan difficult. It’s also made buying houses for cash tough.

It’s also caused a big problem for people trying to buy commercial property. It’s a problem for those looking to sell their property too. Many sellers are unsure if they’re getting a fair price for their property. In some cases, this has been caused by things like compulsory purchase orders, vulture funds and shady property firms offering unfair prices for property. The hopes of these companies are to acquire property for a low cost and sell it for a profit. Some may also rent it out to tenants for high rates.

In any case, it is up to you as a seller to make sure you’re getting a fair price for your property. This is key whether you’re choosing to sell it outright or rent it.  

So, we laid out a few ways you can check to see if you’re getting a fair offer for your property below. This can help arm you with the information needed to protect yourself from being short-changed by a potential buyer.

How to Know if You’re Getting a Fair Price for Your Property

While there’s no foolproof way of finding the exact value of your property, using a combination of the methods below can give a good price range that you should consider if a buyer approaches.

Because all of these methods are imperfect, you should look to use as many of them as possible for the best estimate.

Check the price or value of surrounding properties

An easy way to get a loose estimate of what your property is worth is to look at the price those around you are being sold or leased for.

Elements like the condition of your property or its importance for a certain function in an area may differentiate your property from others. But, looking at the value of surrounding properties will still give you a good rough estimate of your property’s value with little time or money invested.

Check the national and local average

This is another low-cost way of estimating your property’s value. Although, it will require a bit more of your time. Researching the national and local average property price is a good way of finding out how much people are paying for property now.

This can help you put together a price range for both selling or leasing your property for a fair price.

Consult an independent auctioneer

This is one of the most accurate ways of getting a fair value for your property. But, it’s also the most expensive. Independent auctioneers are not cheap. But, they can offer a thorough and specific evaluation of your property and deliver what they feel is a fair price range.

They can also help you sell the property or added efficiency and convenience. No matter what other methods you choose to use on this list, you should combine it with this option for the best results.

Review the buying power of potential customers

While the average national and local house prices are a good starting point for finding a rough estimate of your property’s value, it may be misleading. Many people can find themselves confused as to why they can’t seem to sell their houses or commercial properties at market rates. Buying power of potential customers will dictate whether buyers can afford to buy more, or less, than the market average for your property.

This can also help advise you on whether now is the right time to sell your property or not. So, checking the national average wage, and disposable income, is a good addition to the above methods for accurately valuing your property.

Above all though, be sure that you’re happy with the price you’re being given by auctioneers or potential buyers. If you’re happier keeping your property, you can always sit on it and wait for another time to sell. There’s a reason they say you should buy low, sell high after all.

Meet The Author:

Susan Ranford

Susan Ranford

Susan Ranford is an expert on career coaching, business advice, and workplace rights. She has written for New York Jobs, IAmWire, and ZipJob. In her blogging and writing, she seeks to shed light on issues related to employment, business, and finance to help others understand different industries and find the right job fit for them.

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