How do you get your asking price just right? Well it’s all about comparables (‘comps’) – you’ll need to find the price of similar properties, in similar condition, in similar locations, in similar communities. The problem is that in many overseas markets (including Central America where we specialize) official statistics are not published, there is no Multiple Listing Service (MLS) or central database on prices and transactions. This makes the job of pricing to market much harder. But with a bit of digging around, you should be able to find the information you need.
Start on the Internet and check the asking prices of other properties for sale in your area. If you can’t find any, cast the geographical net a bit wider. While you won’t be able to find out how long properties have been on the market, and it’s practically impossible to find actual sales prices, you’ll find that asking prices are a good starting point to help you assess your competition.
On Reveal Real Estate we collect asking prices for international real estate in Central America so this is a good place to determine market trends for different purchasing destinations. If your property is further afield then seek out the best-researched international real estate sites and news websites for insight into how the market is doing.
Not to high, not too low but just right
The point is to let the data drive your pricing strategy. That way buyers will take you seriously.
Once you’ve got a fair idea of value it’s time to do the rounds of the major real estate agents. Unlike in the US they won’t be able to churn out a CMA (Comparative Market Analysis) or tell you how many days the active, pending and recently sold listings in your area have been on the market. Those databases simply don’t exist. But they should be able to tell you which price points are getting the most buyer interest.
If you can bring your price just below a $25,000, $50,000 or $100,000 price point break, this will help you get your property in front of more buyers. Remember, everyone wants a deal, so if you want your property to sell quickly, either price it lower than the competition, make sure it is decked out with features that buyers care about.