Entering the market with the wrong pricing can be fatal, especially in Bali where supply is so great and buyers are on the lookout for who is most motivated to sell.
We hear this a lot … “My friend told me a villa in my neighborhood sold for more than a million dollars so my million dollar price is reasonable compared to his.”
Many vendors in Bali think this way, but unfortunately it’s not the way to go.
What many property owners don’t realize is markets change very quickly. What happened 3 weeks ago is often outdated now. Today is a different market to yesterdays.
Supply and Demand
When it comes to valuing a property one of the easiest ways is to compare prices of what’s recently been sold in the neighborhood.
But there’s a catch.
Marketing a property above or below the most recent sold prices to test the market can sometimes be a mistake because the price you enter the market with determines how people perceive and receive the offering.
And the wrong price is the kiss of death.
A perfectly good example is when a vendor wanting to sell his home approached me recently. It really was a beautiful property full of modern touches and lovely gardens.
We discussed the value and of course, he had a figure in mind and wouldn’t listen to my professional opinion. I ended up refusing the listing and asked him to contact me in six months knowing that it wasn’t going to sell at the price he was expecting.
Six months went by and the property remained unsold. No surprises there then.
First Impressions count
