The big difference between the desired price and the achievable sales price

“We would like to have at least X amount - we don’t want to sell for less than that.”

As a real estate agent in Nuremberg, I hear this sentence very often. And it’s understandable: every owner associates their property with memories, investments and personal ideas about its value.

But there is often a crucial difference between wanted price and achievable selling price. It is precisely this difference that determines whether a property is sold quickly, stress-free and at a good price - or whether it is left standing for months, loses value and is ultimately sold below expectations.

In this article, I will show you why desired prices are often unattainable, how the achievable price is determined and how the two ideally come together.

Why desired prices rarely match market prices

An owner’s desired price is based on subjective factors:

• emotional value
• memories
• Review of previous purchase prices
• Investments in recent years
• Stories from the environment (“The neighbor got …”)
• Online valuations, which are often inaccurate

The problem: the market does not value emotions, but facts. Buyers are guided by:

• Financing
• Supply and demand
• Condition of the property
• Need for modernization
• Location and micro-location
• Total budget including ancillary purchase costs

A desired price is therefore an inner feeling - an achievable price is the result of a real market situation.

Why the achievable price is not an “estimated value”

The achievable sales price is based on sound methods and real market information.

For me, it starts with the valuation of the property - and this involves much more than a gut feeling.

Important building blocks:

Market value

The market value describes the realistically achievable market value under normal conditions. It is the central reference point for any pricing strategy.

Standard land value

It serves as an orientation for the property value - important, but never a sole benchmark.

Material value method

I use this method for owner-occupied houses when the focus is on substance, production costs and wear and tear.

Income capitalization approach

The focus here is on the yield. It is relevant for rented apartments or apartment buildings.

Market analysis

How much competition is there? How high is the demand? What prices were actually achieved - not just advertised?

Reference properties

Real sales of similar properties are the best indicator of how the market will react.

A realistic price corridor only emerges when these points fit together. And the achievable price lies within this corridor - not in wishful thinking.

The most common mistake: starting marketing with the desired price

Many owners start too high. The result is almost always the same:

• Hardly any inquiries
• Property appears “too expensive” in portals
• the first impression is negative
• the marketing time increases
• Buyers watch the price
• Previous interested parties drop out
• Price reductions become necessary
• Property loses credibility
• the final sales price falls

I often say:

A starting price that is too high is the surest way to a lower final price.

The psychological effect of an inflated price

Buyers don’t think: “We’ll negotiate ourselves down.”

They think:

• “The property is overvalued.”
• “There’s something wrong.”
• “The seller is unrealistic - we’ll keep looking.”

Sometimes a starting price that is too high even leads to serious buyers not clicking on the property at all because it does not appear in the search filters.

Why realistic prices can bring more money

Sounds contradictory - but it’s a reality:

A realistic price generates:

• more visibility
• more qualified inquiries
• more viewings
• more competition between interested parties
• better negotiating position
• higher probability of achieving the optimum price

Put the brakes on asking prices. Realistic prices accelerate and increase the market value.

What I often explain to owners: Desired price and market price can converge

An important point:

The achievable price does not necessarily have to be lower than the desired price.

If the desired price is based on realistic assumptions, it can even be met or exceeded.

The decisive factor is

• the analysis of the market
• the structural condition
• the presentation
• the right target group
• the quality of the interested parties
• a clever negotiation strategy

I always accompany sellers in such a way that desire and reality do not fight each other, but combine sensibly.

How presentation influences the achievable price

A good presentation cannot save a completely unrealistic desired price - but it can maximize the achievable price.

By:

• professional photos
• structured viewings
• clear, honest exposé texts
• complete documentation
• preparation of the rooms
• clear communication

Prospective buyers immediately sense whether a property has been well prepared. And they reward this with a higher willingness to pay.

What owners can do to achieve the optimum price

The most important points:

• Be open to a well-founded valuation
• Don’t set a price based on gut feeling
• Do not overestimate online estimates
• Don’t just compare with neighbors or acquaintances
• Take market analysis seriously
• Approach the presentation professionally
• Place negotiations in experienced hands

If these points are met, the result is a pricing strategy that is both realistic and successful.

Checklist: How to recognize whether your price is realistic

• Have you understood and accepted the market value?
• Does the price match the current demand in your location?
• Can you justify how your price was arrived at?
• Does the property look credible compared to similar offers?
• Do you receive serious inquiries within the first two weeks?
• Are there several interested parties asking for documentation?
• Do reference properties confirm your price range?

If several points are answered with “No”, it makes sense to check the price.

Conclusion: The difference between the desired price and the achievable price determines success or failure

The desired price is emotional.

The market price is rational.

The achievable price is where both come together - supported by:

• sound valuation
• Standard land value, market value, suitable valuation methods
• Realistic market analysis
• professional presentation
• clever negotiation strategy
• Experience in dealing with buyer psychology

My goal as a real estate agent in Nuremberg is not to put the brakes on your dream - but to ensure that it becomes realistically achievable.

Because a good sale is no coincidence, but the result of a clear, comprehensible process.

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Read more: Selling rented properties: owners should definitely pay attention to this | Real estate sales in Nuremberg: Why a neutral view from the outside is crucial