Why you should offer your property at market value

The market value of a property is the result of a professional valuation. The market value is therefore the calculated value at which a property can most likely be sold.

It is usually included as the asking price in real estate advertisements and exposés. It may be possible to add a surcharge of around ten percent to provide room for negotiation. Even if you want to sell your property yourself, you should base your offer price on this market value.

However, there are exceptions. In rural and structurally weak areas with a high supply of real estate and low demand, you should offer your property below the market value if necessary.

Conversely, in metropolitan areas with high demand for real estate, the market values of interested parties are often outbid by each other. It can therefore be the case that several potential buyers want the property and offer you as the seller or the estate agent a sum that far exceeds the market value. There is nothing wrong with this in itself and you can look forward to higher proceeds.

However, a problem can arise if the bank of the highest bidder refuses to finance the property. This is because banks only grant loans based on the market value. In the case of buildings that are to go over the counter at an inflated price, the buyer must pay the difference from their own saved funds. Therefore, in the event of such a bidding battle, you should check with each bidder that they can actually finance their dream property. You should ask to see a provisional financing commitment from the prospective buyer as well as bank statements showing the amount of their own funds.

Do you want to determine the market value of your property or need help selling it? Contact us now.

Photo: txking