Precarious Pricing: The Risk of Over-Valuations

As both an agent and a homeowner, I understand that any person listing their property wants to maximize their return on investment and get full value for their home. Currently, with such a strong real estate market in Puerto Vallarta, sellers can list properties with solid asking prices and, with the right agent working on your side, expect that the closing price will reflect the value of their home.

However, a homeowner’s personal and emotional connection to their property can often lead them into a risky position of overpricing their property, which is why a professional real estate agent who truly understands the Puerto Vallarta area market is key in the success of selling your home. Unlike other cities in the USA or Canada, where Realtors often rely on “comps” (the selling prices of comparable properties located in the neighborhood) to determine the asking price, apart from some exclusive gated residential developments, in Puerto Vallarta you may find a luxury villa on a large lot hidden behind gates next to a smaller, humbler traditional Mexican-style home. The simple idea of price per square foot comps by neighborhood cannot be relied upon and a savvy seller needs a local real estate professional to assist in truly finding the perfect asking price for their property.

A qualified professional real estate agent with a strong knowledge of the local market will be able to assist you in truly identifying both the exceptional qualities of your specific property that will make it most appealing and valuable to potential buyers, as well as being able to have an open and honest communication about the particulars that may need to be addressed to increase your asking price. However, avoiding the temptation, even in a strong seller’s market, to avoid overpricing your property reduces the risk of your property sitting on the market and requiring future price reductions that will eventually damage the true value of your home. For more information about pricing your property for sale in the Puerto Vallarta region, please feel free to contact our office for commitment-free advice.

Warren Brander is an expert real estate agent with Re/Max in Puerto Vallarta. If you are thinking about buying or selling an investment property in Puerto Vallarta or the Banderas Bay area, contact him at (c) +52.1.322.200.2253, toll free1 888 796 6606  or email: warren@remaxinpv.com

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