The Art of Settling On a Price Point in Your Real Estate Deal

by : Kris Koonar

When you are in the process of buying or selling a house, then there is no perfect price, which can be tagged to the house. The correct price would be different in the buyer's and seller's eyes and the perfect price then, would be the price at which you both mutually agree upon.

The price point therefore is the maximum permissible price you could be able to, or are willing to pay or accept for your property. So, if you have seen a property, which has appealed to you, then you will have to decide first as to how much you would be willing to go by to pay for it and also compare it with how much you actually have to be able to purchase it. So, if you end up paying too much to purchase the property, then you will have to pay additional interest on it, if you have taken a loan and you would have a tough time, while selling it. So, there are some ways, which could help you to calculate the right price point for the property.

You could start by checking out the rates in the neighborhood of the location of the property. That would give you an indication of the current rates of that locality. You could even pose as a buyer or seller and check out the property yourself. Check the physical condition of the property, such as the age of the property, the condition and the asking price. That will give you an idea as to the price, where you can slot your property, which you are planning to buy or sell.

If you are planning to sell your property, then ask for a price, which is slightly higher than the market price prevailing. Since, you might start getting offers, which will be lower than the market price, this will provide you some slack to then lower your price a little bit. Negotiating is common between buyers and sellers in any real estate deal. So, you should be well prepared to do just that. Do not take the opposite party's stance personally. Rather put yourself in their shoes and imagine what you would do, if you had to negotiate. Keep calm and be polite, but firm while negotiating.

Do your homework well, in the sense to calculate all the financial angles, such as the rate of interest, the amount of down payment and any other expenses, which are to be done on the property, before arriving at any figure, to be quoted from your side. If any survey or appraisal has to be conducted on that property, then it has to be decided as to who will bear the costs and that too has to be included in the price factor.

A real estate broker would be of great help, if you were new to this type of dealing. He can help you to calculate all hidden costs, which you might not be aware of. Also, your right point might not be fixed and would also depend on whether the buyer of your property is offering you full payment cash down, or if he is offering you part cash and the balance through any financial institution. Keep your options ready and clear in your mind.

Remember, that flexibility is the key in any negotiations, but you should be clear and firm, to be able to resist getting sucked into the opposite party's negotiating web. The final price, which is settled upon should hence, make both of you happy and that you have achieved your respective price point.