The Right Price = A Faster, Smoother Sale

Last week, I visited a lovely long-term client. The coffee was poured and the cake was on the plate, but the topic we had to address caused a bit of anxiety. She showed me her beautiful home, in which so much love, time, and memories had been invested, and she said: "Riti, I would like to get 200,000 euros for this. It's worth it, right?"

I looked at her, and I was genuinely sorry to be the one who had to tell her about the reality of the market. I knew the latest transactions in the area and did a quick calculation. The actual sale prices of similar apartments were closer to 175,000 euros. The honest answer was that with a price of 200,000 euros, this home would simply sit on the real estate portal for months.

Determining the right sale or rental price for an apartment is one of the hardest steps in the whole process. After all, we aren't just selling concrete or parquet – we are selling a home where memories have been made, laughter and tears shared, and growth has happened. However, a buyer or tenant is looking for a rational deal in the market. So, how do we find that golden middle ground?

Here are a few simple truths that I always point out when it comes to the most important topic – price.

1. How does the market actually shape the price?

The price of an apartment is not determined by how much time and resources we have invested in it, nor by how much money we need to buy a new home. Unfortunately, the market is ruthless in this regard.

An apartment's price is primarily influenced by:

• Location and infrastructure. Are schools, kindergartens, and public transport nearby? For a family with children, a playground in front of the building is often a thousand times more important than whether the apartment has brand-new, expensive oak parquet.

• The quality of the apartment association and utility costs. Because who would want a home where the maintenance costs are simply overwhelming? If utility bills are pushed through the roof, it automatically reduces the sale price of the apartment.

• Actual transaction prices, not listing prices. This is the biggest trap! The prices visible on portals are wishes, not transactions. The Land Board's transaction statistics show the prices at which similar apartments actually changed hands.
  
  

2. Typical mistakes when selling and renting a home

Over the years, I have mainly seen two major stumbling blocks:

• "Let's start with a higher price, we have time!" This is the most common mistake made. If you put an apartment up for sale with a price that is too high, the following happens: the first 2-3 weeks (when the apartment is "new" on the portal and interest is highest) pass in silence. The apartment gets "stale". Eventually, you are forced to lower the price, but by then, buyers assume there is something wrong with the apartment because it has been on the market for so long. The result? The final sale price is often lower than it would have been if started correctly from the beginning.

• Overpricing the rent. Renting out an apartment also requires a precise hand. If you ask for 50 euros more than the market price, the apartment might stand empty for two months. Let's do a quick calculation: two months of an empty apartment means thousands of euros in lost income, which that extra 50 euros a month will not recover even in several years.
  
  

3. How does the right price affect transaction speed?

When the price is right, the sale or rental goes smoothly. The transaction speed of an apartment depends exactly on whether the buyer feels that the offer is fair.

The correct pricing generates interest in the market and brings people to the door. The first interested parties arrive, emotion is built, and sometimes a bidding war ensues, which drives the final price higher than originally planned.

Personal experience: the price was set and mind was at ease

Last year, a lovely mother approached me whose children were about to start school, and it was clear that their current apartment would soon be too small for them. She was initially convinced that her home was worth at least 10% more than neighboring apartments because she had invested an enormous amount of her time and effort into it. 

We sat down, looked at the actual transactions in the area, and talked about things as they are. Honestly and directly. She took my advice, and we went to market with a precise and realistic price. The result was that we found a new owner in 12 days, and both parties were satisfied.

Summary

Selling or renting out a home does not have to be stressful or a journey into the unknown. At ELLIX, we focus on making every transaction simple, secure, and successful.

If you are thinking about selling or renting your home and do not know exactly what price to start with, feel free to get in touch. We will review the market together and discuss what the best plan would be for your home ✨

Riti Saul | Real Estate Agent | riti.saul@ellix.ee | +372 504 5229