Pricing your home correctly is an important part of the selling equation.
Pricing Baja real estate to sell takes more insight and market knowledge than pricing a property to sell in the U.S., where there are many multiple listing services available. There are two main reasons why this is true.
First, here in Baja, the MLS system is young and just beginning to mature. For many areas, there are very few records of sold properties that can be used for comparison. Among those that are recorded, you will find that many Baja property sellers and/or buyers have not reported the true selling price in order to avoid higher transfer taxes and capital gains taxes. (Don't ever do this yourself!) With these obstacles, it is very likely that the recorded information about how much homes have sold for in your neighborhood or condominium development within the last 6 months may be incorrect, incomplete, or simply nonexistent.
Second, more buyers than ever are entering the Baja real estate market, and the Baja market is becoming more efficient. Buyers are now viewing many Baja properties for sale before making an offer. These well-informed buyers of Baja real estate are now driving Baja real estate prices with their offers, meaning that Baja buyers are actually more in control of market values than Baja sellers.
With the lack of available data for comparison and with Baja real estate buyers driving the market, it is now more important than ever to put yourself in the seat of a buyer if you intend to sell your Baja property within a reasonable amount of time. One excellent piece of advice is to view the Baja market the way a diligent buyer views the market and price your home accordingly.
Sellers of Baja real estate should view as many properties as they can that are either competing with their property for sale or have recently sold. Remember, Baja homes on the market merely have their asking prices advertised, and an asking price is much different than a sold price.
In addition to viewing the competition when pricing your home for sale here in Baja, it is important to get various opinions on what price your home could sell for, within a reasonable amount of time, given current market conditions. Beware, however, when getting opinions on the value of your Baja home for sale. Unscrupulous agents may overprice a Baja property just get the listing, knowing that it might not sell, and expecting the seller to drop the price later.
Here are the most important steps to take when pricing your Baja property to sell.
1. View at least a couple of homes that will be competing with yours in the market place.
2. Don't list your property with the agent who gives you the highest asking price. Choose the agent with the best marketing plan and a competitive price.
3. Don't assume that a selling price is good just because your neighbors are asking it for their home. Most people cannot remain objective when pricing their own home for sale.
4. Remember, asking prices are different than sold prices.
5. Take into consideration the direction of the Baja housing market place, and price your home accordingly. Are the prices of Baja real estate going up fast, coming down fast, or remaining level?
6. Get more than one opinion on the pricing of your property for sale, and don't ever, ever, ever let any potential buyer think that you might be greedy with your asking price. That turns off buyers, and they will just keep on looking.
Price your home fairly and competitively, and you will get results.
by Mario Restrepo