There are many more sellers in the Cyprus property market than buyers. In this business we deal with both sides and we represent both buyers and sellers and work really hard to ensure our clients are well advised and informed in order to make the best decision. It is the duty of any agent representing the sellers to advise them on what should be done to best accomplish the sale. Presentation of the property and first impressions are always crucial to selling and making the home appealing to the fewer buyers out there. However, the single most important ingredient in accomplishing a sale is pricing. Housing prices throughout most of the developed world are declining due to the global financial crisis we are in so it is crucial to price to sell if you really want to achieve the sale.
In a declining market, where home values are changing rapidly, many property owners, Cyprus included, tend to overprice their properties when they initially begin the selling processs. Sellers are looking at outdated statistics when trying to decide on their selling price. Sellers usually calculate a price based on what the appreciation should be in a normal healthy market or a neighbour down the street sold for a certain price and they think their property is so much more special and that they can always reduce it later which is the wrong way of thinking.
This begins the process of what is called “chasing the market” something that is a common mistake that occurs much too often lately. I will explain what “chasing the market” is and how it will ultimately cost you a lot of money if it is not avoided. Let us say you are selling your property and you think that it’s worth 500,000. and you want to list it at that price. We know, however, and advise you, that most comparable homes are selling for around 465,000 to 495,000. So, when you list at the 500,000 prices, your home is the least likely property to get any viewings, which of course means least likely to be sold. This usually continues when a few months later you decide to reduce their property to 465,000. At the same time, the other comparables are now listed between 425,000 and 455,000 and this continues until the sellers finally listen to what we and the market are telling them or they continue to chase the market and add more agents thinking that we or the other agents representing them are not doing their job.
I have heard many sellers complain about previous agents and how they have not brought a single person to view their home. They say this and then they still list their home with me at an overpriced sum. Repeatedly overpricing with many agents will get exactly the same results as before or constantly lowering means the chase continues.
Even in a slow market, there are buyers and if you price your home correctly from the beginning you can sell your home fairly quickly. If a property was priced correctly early on in the selling process the odds are much greater to sell before your neigbours. I have many clients chasing the market and others who have lost 100,000 or more although it could have been saved and a transaction completed saving much time, stress and money for the sellers and agents. Even in a small island like Cyprus, there are properties that are sold before they go on sale to the public and listed on our sites. I would much prefer to sell a home without having to upload it and do all the work required to market it. This happens when the price dictates it or you can say “The price does the talking”.