There are still quite a number of Singaporeans whose view of the property market are a bit biased. Even though some may have read quite a number of articles online based on the property market, they can still find things quite confusing. Adding to this confusion are articles full of information that is often conflicting. This further exacerbates the issue and creates difficulty for anyone seeking property to make an informed decision regarding what their next step should be.
The Vales Sengkang
This seems to be more so when it comes to sellers. Forecasts for 2015’s property market show a market that will remain subdued. This means that those sellers who are looking to get rid of any current properties could be faced with a period of over six months to find a buyer that is suitable. A common tactic, as a result of this, is for the seller to adjust their selling price, which can often be at a much lower price than they were expecting.
What does a seller need to know so that they can be in a more beneficial position to negotiate? With a bit of help from property agents we will take a look at those selling tips that many seeking properties have read or heard and determine whether they are fact or fiction for The Vales EC.
Selling Tip 1: In order to give yourself more room to bargain with, it has been advised that property sellers set their prices above the actual valuation price.
The Vales Sengkang Anchorvale Crescent
Is this fact of fiction? Fiction
Property expert Kevin Seah points out that, given the current buyers’ market, you could end up pricing your property straight out of the market by setting it higher than the valuation price. This means buyers won’t even bother to look into your property. In order to balance the expectations of both sellers and buyers, it is critical to know what the current asking prices are for units in your particular development that are on sale. Also, look at properties nearby that are comparable. Choose a price that fits within that range of asking prices. If you are wanting to sell your property quickly shoot for the lower end of the pricing range. If you are able to wait for your property to sell, choose the higher end of the spectrum. Also of benefit is to acquire a suggested valuation price, which can be easily obtained from loan bankers for The Vales Sengkang.
Expert Kaeden Ong shares that the most vital part of any sale of property is having competitive pricing, especially when in a tough market. When trying to choose a selling price for your property you must consider the key factor of supply and demand. If your property is in an area where home sales are not doing too well, either due to a high supply of homes up for sale in that particular project or a low demand that can be based on the recent number of transactions, the best strategy will most often be to compare the recent sale prices on properties in the area that are similar, then choose a price that is in accordance to the current market value for The Vales.
With that in mind, the only way that using the strategy of pricing a property or unit above the market value will work is if that property is in high demand (has a transaction volume that is high) in that area where the supply of units available is low.
The Vales EC
Selling Tip 2: Always offer the seller an amount that is 10% below their asking price
Is this fact or fiction? Fiction
Kevin Seah says that the process of negotiation is a fluid one that can change with each situation as every property is different. This can be dependant on whether a buyer or seller has more power for bargaining. This will have an impact on how the process of bargaining is carried out and because of this, there is no benchmark price or percentage that a buyer or seller should end negotiations on.
Nonetheless, a seller should have the knowledge regarding property prices in their area, as well as be aware of what their own holding power is, in order to set a reserve price (the absolute lowest amount a seller is willing to sell their property for), before they start any negotiation process for The Vales.
Selling Tip 3: If you have had renovations done or added a lot of features, such as walk-in wardrobes and interior design, your property should be sold at a higher price.
Fact of Fiction? This Depends
Kaeden Ong explains that renovations to a property can have its benefits where its value is concerned. However, buyers will still go the route of basing past transactions on their asking price, especially when faced with a tough market. Each buyer has different expectations though, making this matter quite subjective.
It is true that first impressions count. Any property you are selling should be cleaned up and made tidy in order for it to look more presentable to buyers. This may mean fixing or servicing pipe and water leakages as well as giving the property a fresh coat of paint before making it available to prospective buyers to view. Feedback based on the experiences of other buyers themselves have shown that a property that does not look well cared for will lower a buyers confidence in regards to purchasing that property.
Selling Tip 4: Always trust the accuracy of your property’s appraised valuation.
Fact or Fiction? Fiction
Kevin Seah points out that there is no exact science to property valuation. This is why it is important to understand that an appraisal is good enough to give you an estimation of the value of your property. With this in mind, a seller should make an allowance of up to 15% over, as well as under, the valuation price.
Selling Tip 5: A property’s value is determined by the value of similar properties in the area or district and what they are selling for.
Fact of Fiction? Fact, in most cases in The Vales
Kaeden Ong explains that, before any valuation, such as a property valuer looking at the property to give their estimation, a seller can obtain an indicative valuation by merely doing a bit of research based on similar sales in their vicinity. However, there are situations where a deviation can be found, such as a couple of units being sold for a price that is higher than usual in that district. There are factors that explain this, such as the orientation of the unit being in a better area, for example a North-South facing property vs an East-West facing property. Also, the property’s age, interior layout, floor number, and the popularity of a property can have an effect. In some cases it is just down to luck, where one may find a buyer who is happy to pay a premium.