1. SETTING AN INCORRECT PRICE FOR A PROPERTY

Obviously, housing prices have a great influence on buyers’ decision making process. They are often determined by considerations of the setting, area and house condition, not at the whim of the seller.

3 factors underlying buyers’ decision to buy : Area, House condition and Price.

House salability depends on many different factors. For instance, a house located in a good area but in poor condition cannot sell at a price comparable to one located in a normal area but in better condition. Buyers’ decisions arise from consideration of the value under the conditions of what is a reasonable price in the circumstances.

Sellers setting unreasonable prices hoping to find a buyer willing to pay for a house based on consideration of area alone may overlook defects of the house to their detriment. This is because buyers look at resale homes in terms of costs of furnishing and renovation/repairs in addition to the asking price. Therefore, a buyer may consider a house requiring significant repairs a poor value.

Sales through an agent may have a better chance of success though if the price is too high, the addition of the agent’s fee may make the house difficult to sell despite people showing interest in the house. Therefore, the salability of a house depends on the combination of price, house condition and area.