35 Brand New Condominiums Nearing Their ABSD Deadline 2023
TLDR The blog post discusses the looming ABSD deadline for several new launch condos in 2023, highlighting the impact on...
Read More
TLDR
Selling a property can be challenging without the right price strategy. Adjust your asking price to attract more buyers and avoid long market stays. Overpricing can deter potential buyers, but minor reductions can improve search visibility. Regularly reassess your listing’s age and market trends to stay competitive. Establish a clear timeline for price adjustments to avoid impulsive decisions. Be mindful of policy changes like ABSD rates, which can impact buyer behavior. Acting swiftly on initial offers might prevent lower subsequent offers. Strategic planning and market understanding are key to securing your dream property.
After what feels like an eternity, not a single soul has presented you with a tempting offer. And let’s face it, you can’t move on to your dream property until this one is off your hands. Perhaps it’s finally time to take a leap of faith and reduce your asking price?
We know, in a market where replacement properties cost a fortune, it’s hard to let go of your desired profit. But consider this – settling for a slightly lower amount now could mean the difference between securing a more ideal home or no sale at all.
Let’s see what advice some seasoned agents have for those moments when it’s necessary to adjust your expectations.
1. Adjust Downward to Align, Despite Your Aspirations
Starting with a steep asking price is a common pitfall, as it can immediately turn off potential buyers and discourage any further negotiations. Yet, some sellers insist on aiming for the stars and refuse to budge, unaware of the lost opportunities.
For instance, a recent case involved a two-bedroom unit sold by a colleague in 2023. Against his advice, the seller stubbornly set an asking price 20 per cent higher than similar units in the condo. The first two interested viewers never returned, likely assuming their offer would be dismissed without consideration. Finally, the seller relented and agreed to match the prices of other listings.
Miraculously, within a month, the condo was snapped up at a price close to the original asking, thanks to shrewd negotiations. Lesson learned: starting too high can ultimately lead to settling for less.
2. Consider Adjusting the Price for Better Search Visibility!
In today’s market, the majority, if not all, of home seekers rely on property portals rather than the traditional newspaper classifieds to find their dream abode. If you’ve dabbled in these portals, you’re well aware of the plethora of filters at your disposal – from leasehold or freehold options to specific construction dates. And among these filtering options, the ever-popular filter for price reigns supreme.
But here’s something to consider: if your flat is listed at $505,000, but a potential buyer sets the filter to $500,000 or below, your listing may be ousted from their search results. To increase your chances of being seen, it may be wise to adjust your price by a mere $5,000 to align with the search system.
(On a related note, for all you buyers out there, it might be beneficial to set the filter slightly higher – say, at $550,000 if your budget is $500,000. This way, you won’t risk missing out on fantastic listings that may just be a smidge above your set limit).
3. Adjust Pricing According to Listing Age
Navigating through property listings can be tricky, especially in smaller developments with limited transactions. Often, the only other unit available in your project is either significantly larger or smaller, making it difficult to find a fair comparison. In such cases, it may be more beneficial to look at units of similar size in nearby projects. However, it is ideal to find close comparisons to your unit, and take note of the “listed on” date of these properties.
According to M, if your listing is one of the oldest in comparison, it could be a sign that your asking price needs to be adjusted. This can also create assumptions among potential buyers and their agents, leading to lowball offers.
It is important for agents to keep track of the average days a property stays on the market, specific to the property type and area. This information can serve as a benchmark, and if your listing exceeds this average, it may be time to consider lowering the price. Discussing this with your agent beforehand can prepare you for any necessary adjustments.
4. Implement a Strategic Lowering Approach, Not Intuition!
Working closely with HDB upgraders, I’ve noticed a common mistake pointed out by my colleague – one that plagues those who attempt to sell their own flat without proper guidance. It’s the failure to establish a clear timeline for price adjustments.
When our clients entrust us with their sale, we carefully assess their time frame and strategize accordingly. If there’s no response after a couple of weeks, we make a calculated price reduction. And if still no takers, we adjust once again, and so on.
But for those who brave the selling process alone, they often rely on their gut feeling. This ad-hoc approach can be taxing and lead to impulsive decisions. Instead, having a structured timeline in place can help alleviate the stress and guide rational choices.
Of course, this timeline is determined by various factors like ABSD remission (if purchasing before selling) and competition for a new property. While there’s no one-size-fits-all formula, it’s crucial to remember that the shorter your runway, the quicker you may need to adjust your price.
5. Decrease in Asking Price After Policy Adjustments
Deciding on whether or not to lower the price of a property can be a daunting decision, as the timing of a policy change, such as an increase in ABSD rates, can be uncertain.
While there may be a desire to hold out for a higher price, particularly after viewings have taken place, it is important to pay attention to the level of interest after the policy adjustment.
In some cases, it may be wise to lower the price before the situation deteriorates. According to ST, this was the case for one of his clients during the July 2018 cooling measures.
“Following the rise in ABSD rates, many potential buyers chose to adopt a wait-and-see approach. Despite receiving an offer slightly below their desired price, the seller refused to budge. However, as time passed and interest dwindled, they were forced to settle for an even lower offer in order to proceed with their own property purchase.
In hindsight, had they accepted the first offer, they would have been in a much better position. Thus, it is sometimes necessary to readjust our expectations before things worsen.”
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
44 Exciting New Condo Launches in 2024 Starting at $1,402!
Alright, let's talk about 2024. We're not expecting the same kind of shortages we've seen after COVID-19. Some folks are...
Read More
6 Essential Factors HDB Upgraders Should Be Aware Of Before Purchasing a Condo in 2023
TLDR When upgrading your property, consider factors like rental rates, Buyer's Stamp Duty adjustments, higher interest rates for bank loans,...
Read More
Top 5 Best Scenic Drives in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, also offers some of the most picturesque driving...
Read More
Does Sell 1 Buy 2 Strategy Still Works Today in 2024?
TLDR When considering the "Sell One By Two" property investment strategy, keep in mind that it involves selling your previous...
Read More
A Comprehensive Guide for Buying Landed Real Estate in Singapore
TLDR When it comes to buying landed property in Singapore, there are three main types: terrace houses, semi-detached homes, and...
Read More
Top 5 : Best Hidden Beaches in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to some of the most...
Read More
Top 5 Rules for Investing in Singapore’s Property Market – Expert Insights!
Investing in Singapore's property market has long been considered a lucrative and stable investment option. With its robust economy, strong...
Read More
Top 5 Reasons : Why Penthouses In Singapore Are Popular With Crazy Rich Asians
Singapore, a city-state known for its stunning skyline and luxurious lifestyle, has become a popular destination for the ultra-wealthy. Among...
Read More
5 Factors : Why Singapore’s Property Market Is Still A Safe Haven For Investors
Real estate investment has always been a popular choice for investors looking to generate passive income and build long-term wealth....
Read More
5 Things to Know About Singapore’s Urban Redevelopment and Landscape Changes
As one of the world's most densely populated cities, Singapore has undergone significant urban redevelopment over the past few decades...
Read More
Investing in Singapore Real Estate as a Foreigner
TLDR The blog post discusses the rules and regulations for foreign investors looking to purchase real estate in Singapore. It...
Read More
5 Singapore’s Best Property Investments for 2023: Where to Find Growth and Income
The Singapore property market has long been a sought-after investment destination, with its stable economy and growing population making it...
Read More
Will New Launch Condos See a Drop in Prices Soon?
TLDR The real estate market in Singapore is experiencing a trend of lackluster bids for prime properties in various locations....
Read More
Singapore’s Housing Phenomenon: A Success Tale Calling for Tweaks – Insights from the Experts
TLDR Singapore's housing system has been praised for its effectiveness in meeting citizens' homeownership desires. The public housing program by...
Read More
Discover the 7 Unique Attributes of Real Estate Investing
TLDR The post highlights the benefits of investing in real estate, such as high leverage, capital appreciation, income generation, usability,...
Read More
Singapore Property Investing: Is It Better To Flip Or Hold?
Investing in Singapore property can be a profitable venture, but investors must choose the right strategy to maximize their returns....
Read More
Why En Blocs Often Fail to Succeed
TLDR In this blog post, the focus is on the challenges and complexities of en-bloc transactions in Singapore's property market....
Read More
The Changing Faces of Orchard Road
Should You Buy, Sell or Wait? If you're reading this, you must be trying to figure out the best course...
Read More
5 Techniques for Identifying Undervalued Properties in Singapore 2023
TLDR To spot undervalued properties in Singapore's real estate market, focus on market value, location, and unique features. Consider "up...
Read More
