Going back to my previous article on the three factors that influence the sale of a property - the conservation status, the price and the marketing - and the fact that the conjunction of these three is what will drive the sale, I will discus in this chapter the one that, for most people, is the most important the Price.
The key person in the Price factor of a property is not, as many people may think, the owner or the real estate agent but, and unfortunately for those selling their properties, the Buyer of the Property.
Yes, the purchase price of a house is decided by buyers who make offers on the price they are willing to pay. The price is never fixed as it will vary up or down depending on the laws of "Supply and Demand" and other external influences as an unstable situation of the economy, the lack of financing to buyers, urban planning problems , etc.
The price at which the owner originally bought the house, the reforms that have been made, the price at which the neighbors have sold years ago or sentimental or emotional value that is in every house are not valued by buyers. In today’s market, buyers have "immediate access" to all properties that are for sale on the Internet in a simple and quick way. This situation is very positive if your home has a very attractive price but it is negative if there are other similar properties for sale at more competitive and interesting prices than yours. All buyers prefer to visit the most attractive looking opportunities so if the asking price is not competitive, the chances of a sale decrease dramatically until all these houses with more attractive prices than yours have been sold and yours is left in the top search engines and portals.
For those properties in the market, the best way to get an indication about the price the property is going to be sold for is the traffic (of potential buyers) that the property is generating. If the marketing and the condition of the property are correct, no traffic means a highly overpriced property with no interest for the buyers with that budget and constant traffic but no offers means that the property is slightly overpriced as the buyers like what the see but not the price resulting in the purchase of any of the competitors.
The conclusion is as simple as this: if no buyer is ready to pay the asking price of a property, that property is overpriced for the actual market conditions.