Understanding the True Value of Your Property
When selling your property, it is important to distinguish between price and value. While these terms are often used interchangeably, they hold distinct meanings in real estate. As Warren Buffett wisely stated, "Price is what you pay. Value is what you get." This distinction underscores the need to strategically price your property while considering its actual market value.
Price vs. Value
In casual conversations, price and value are often treated as synonyms, but in real estate, they refer to different concepts. Price is negotiable, while value reflects the inherent worth of the property in the market. Understanding this difference is critical when positioning your property for sale.
Determining Value
To sell your property quickly and at the best possible value, it is essential to determine its market value and set a strategic price. While you may have financial goals tied to the sale, such as funding the purchase of another property, these goals may not align with the market value. The true value of your property is based on recent sales in the area, adjusted for factors like size, condition, and location or neighborhood.
Pricing as a Marketing Strategy
Pricing your property accurately is a critical component of your marketing strategy. The current real estate market conditions determine value, and unrealistic pricing can lead to delays and missed opportunities. Here are three common pricing strategies:
- True value pricing: List the property at its current market value.
- Lower pricing: List below market value to attract more buyers, with less negotiation off the asking price.
- Higher pricing: List above market value, anticipating more negotiation and potential price reductions.
The typical negotiation margin has been approximately 5% off the listing price since 2015. We recommend true value pricing, taking this margin into account.
Using Comparables
In Costa Rica, the absence of an MLS means you will rely on your REMAX agent for a seller’s report with data from the past two years. Our internal Costa Rica MLS database provides extensive information, including current listings and recently sold properties. Your REMAX agent will evaluate this data to recommend a market value for your property.
How RE/MAX Can Help You
With decades of experience selling real estate in Costa Rica, RE/MAX has consistently helped sellers achieve optimal results. Here are the key benefits of working with us:
- Accurate pricing through a detailed seller’s report with real comparables.
- Access to the international marketing power of the RE/MAX brand.
- Free due diligence before listing your property.
- Professional support throughout the sales process.
- Comprehensive expertise and deep market knowledge.
Contact us for more information. We would be delighted to meet with you and provide valuable insights!
Isabelle Emond, Owner/Broker