In this article we go over some important tips on how to determine your Cabo home value and why it matters. Overpricing your property is never a good idea.
There are several no-nos in the real estate business. Out of every single one, the one that stands out the most when talking from a seller’s perspective is to give your property, an overinflated price tag. No matter the quality, benefits, or the location.
Whether you change Los Cabos for San Jose del Cabo, or Todos Santos is beside the point. Just because it’s a coveted spot doesn’t mean you can throw etiquette into the wayside and expect someone to buy it, regardless of cost.
Lacking the key seller manners goes well beyond making it less likely to land a buyer Baja’s popular areas such as Cabo San Lucas and Todos Santos. It damages reputations, which is more or less a negative investment for the future in terms of connections. You don’t want that to happen in one of the booming real estate markets of current times. Less so with the iron grip of social media and word-of-mouth advertisements regarding our everyday living.
The least you want is to see your reputation, hard work, and investments thrown aside just because you didn’t think through the implications of setting the bar of your sale sky-high.
Below you will find five reasons you should never overprice your Baja home. Buckle up because it’s time to swallow some of that real estate red pill.
Finding out your Cabo home value is essential to avoid overpricing
Impressions are long-lasting, wrong first impressions, especially when you’re looking to buy something. Even more so when overpricing that Cabo beachfront property of yours without consideration of context, location, or openness negotiation.
Why is that, do you ask? Why would a luxury home in pristine conditions merit such an adverse reaction from potential buyers?
Simple. Regardless of the amount of care, time, detail, and money you put into your property. If you place the cost well above similarly equipped houses around the location. It’s not going to paint a pretty picture for the clientele. On the contrary, if not greedy, you’ll look prideful, and that won’t get people to buy your real estate.
Think of the inverse, the average “too-good-to-be-true” properties. If you want a clear-cut comparison. The waking dream offers to live the high-end lifestyle at a reasonable price. Except, here you’re not a sore thumb by being far cheaper than the rest, exceedingly so, you’re a sore thumb because you went overboard when pricing your Cabo home.
You might not be breaking any laws, nor trying to trick anyone under ethical, quality business. You’re telling everyone that either a) you don’t know what you’re doing or that b) you think too highly of your property. Both you should avoid.
Overpricing your Cabo Home brings out the worst types of buyers
The hypothetical Cabo beachfront property is the same one towering over the rest in terms of its price tag. It finally caught an eye. Unfortunately, it’s not a good one for this example seller, not at all.
You see, it’s one thing to have room for negotiation in a sale (or presale) and to be clear about it when looking to buy at a more reasonable price. It makes people feel safe, making potential buyers range from civil to amicable, which makes them far more likely to find common ground, both socially and sales-wise. On the other hand, a desperate seller will catch the eye of the worst hagglers and aggressive buyers.
Take it from us and the rest of the real estate market here in Baja, not just one boasting the oceanfront lifestyle of Los Cabos, but worldwide. Repriced and formerly overpriced properties will usually fetch a lower price after negotiation, far lower than one would like, no matter how pristine their condition.
Except, we’re not talking about a compromise where the money from the sale is acceptable, and the situation calls for it. We’re talking about a “now or never” scenario that no one likes to be in. The sort where you’re better off keeping your property and hoping for the best—not that that’s any better in this context, but you get the picture.
Sure, buyers like to make deals to trim down costs whenever possible. It’s part of the whole selling process, an ingrained instinct as old as taxes and accounting. Still, if you want good buyers whose negotiations don’t dip far below your expectations. You need to set the price tag within the target audience’s range.
It’s psychologically proven that it’s easier to approach a deal within your cost range and work out a small discount than shaving off zeros off an inflated tag. The fair few who don’t care about those zeroes, as explained beforehand, aren’t the type of people you want to do business with.
Use the presentation to your benefit, not the other way around.
Having a professional home appraisal to know your Cabo home value leads to more showings
A property is more than just some living quarters. It’s both a profit and a bank. The more you have the house with you, the more you can ask for it. However, all these quality add-ons and maintenance costs you may have invested in it will become more or less moot points if you go overboard with the price tag.
Regardless of quality, luxury, or location, someone will have a property up to par with yours. With just as lovely a backdrop to boot. You better bet that someone will have all the new showings, sales propositions, and, eventually, profits that you will not.
Why? Because that someone priced their property with the rest of the Baja market. Rather than testing it as if it were some housing bubble elastic band.
Don’t overdo it and don’t overprice it. Much like with expectations, selling properties, especially in a market like Baja, really goes a long way when determining success or failure.
Know what your property is worth and keep your goals grounded. We all want a slice of that luxury, real estate lifestyle cake—and to eat it too. But we can’t go around thinking that we can warp the market to our wants. Playing nice goes a long way in making profits.
We invite you to read more tips in our article “Why it’s important to price your home right before selling“. You can also reach out to us directly and we will gladly help you with you home evaluation.