„We would like to have at least X amount - we don't want to sell for less than that.“
As a property agent in Nuremberg, I hear this phrase very often. And it's understandable: every owner associates their property with memories, investments and personal ideas about its value.
But between Desired price and realisable sales price often makes a decisive difference. It is precisely this difference that determines whether a property is sold quickly, stress-free and with a good result - or whether it remains 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 calculated 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 neighbour got ...“)
- Online reviews that are often inaccurate
The problem: The market does not value emotions, but facts. Buyers orientate themselves by:
- Financing
- Supply and demand
- Condition of the property
- Need for modernisation
- 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.
Asset value method
I use this method for owner-occupied houses when substance, production costs and wear and tear are the main factors.
Income capitalisation approach
The focus here is on the return on investment. It is relevant for rented flats or apartment blocks.
Market analysis
How much competition is there? How high is the demand? What prices were actually realised - not just advertised?
Reference objects
Actual 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 enquiries
- Property appears „too expensive“ in portals“
- the first impression is negative
- the marketing period increases
- Buyers watch the price
- Former interested parties drop out
- Price reductions become necessary
- Property loses credibility
- the final selling 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.“
You 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 reality:
A realistic price is generated:
- More visibility
- More qualified enquiries
- more tours
- More competition between interested parties
- Better negotiating position
- Higher probability of achieving the optimum price
Wishful prices put the brakes on. 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:
- Analysing the market
- the structural condition
- the presentation
- the right target group
- the quality of the interested parties
- a clever negotiation strategy
I always accompany salespeople in such a way that desire and reality do not fight each other, but combine in a meaningful way.
How presentation influences the achievable price
A good presentation cannot save a completely unrealistic asking price - but it can maximise the achievable price.
Through:
- professional photos
- Structured tours
- Clear, honest exposé texts
- Complete documentation
- Preparation of the rooms
- Clear communication
Potential buyers immediately sense whether a property has been well prepared. And they honour 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 evaluation
- Don't set a price based on gut feeling
- Do not overestimate online estimates
- Don't just make comparisons with neighbours or acquaintances
- Take market analyses seriously
- A professional approach to presentations
- Placing negotiations in experienced hands
If these points are fulfilled, a pricing strategy is created that is both realistic and successful.
Checklist: How to recognise 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 explain how your price was arrived at?
- Does the property appear credible in comparison with similar offers?
- Do you receive serious enquiries within the first two weeks?
- Are there several interested parties asking for documents?
- Do reference objects confirm your price corridor?
If several points are answered with „No“, a price check makes sense.
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 evaluation
- Standard land value, market value, suitable valuation methods
- Realistic market analysis
- Professional presentation
- clever negotiation strategy
- Experience in dealing with buyer psychology
My aim as a real estate agent in Nuremberg is not to put the brakes on your dream property - but to ensure that it becomes realistically achievable.
Because a good sale is no coincidence, but the result of a clear, comprehensible process.
