MLS PAREB WHY PROPER PRICING MATTERS IN THE PHILIPPINE REAL ESTATE MARKET?
February 28, 2025
Understanding the critical importance of proper pricing is essential for property sellers and real estate brokers in the Philippines.
The Right Price is the Listing That Sells
Overpricing properties can significantly hinder your success. At any given moment, there's a backlog of buyers eager to purchase properties within a specific price range. These buyers typically make their decisions within a few weeks. If a property is overpriced from the outset, the initial wave of interested buyers will have already made their decisions and moved on by the time the price is adjusted to a more reasonable level.
Missed Opportunities and Perceptions
Once the property price is corrected, only new buyers entering the market will come across it. These new buyers, along with their real estate professionals, may start to wonder why the property has been on the market for so long. This can lead to suspicions about potential issues with the property and attract speculators who sense desperation, often resulting in low-ball offers.
The Crucial First Weeks
The first several weeks after listing a property are the best chance for it to sell. Missing this crucial initial window can lead to the property missing the market entirely. This drastically reduces the chances of a successful sale at a fair price. Overpricing by even a few thousand pesos can ultimately cost a seller many thousands more in the end.
Avoid the "Let's Try It and See" Approach
It's essential to remind sellers that taking a "let's try it and see if we can get it" approach to pricing nearly always backfires. Sellers often request to increase the price so that when buyers make a "tawad" or low offer, they can meet in the middle. This strategy usually results in the property being priced above the fair market value, deterring serious buyers.
For example, if you're selling a house and lot in a good location, pricing it correctly from the start will attract serious buyers quickly, rather than having it sit on the market and raise doubts.
Tips for Real Estate Brokers
Conduct Market Research: Use data from the MLS to analyze recent sales and current listings in the area. This will help you set a competitive and realistic price.
Educate Sellers: Explain the risks of overpricing and the benefits of proper pricing. Use real-life examples and data to support your points.
Monitor the Market: Keep an eye on market trends and be ready to adjust prices if necessary. Staying proactive can help you stay ahead of the competition.
Effective Marketing: Combine proper pricing with effective marketing strategies to attract the right buyers. Highlight the unique features and benefits of the property.
MLS PAREB Website: The MLS PAREB website has Comparative Property features available to PAREB Members in Good Standing (MIGS). These features allow you to compare prices and present accurate data to sellers. This tool can help you set a competitive and realistic price and provide an opportunity to secure exclusive listings due to the network and collaboration with PAREB Brokers.
By understanding and implementing these strategies, property sellers and real estate brokers in the Philippines can maximize their chances of a successful sale and achieve their goals more efficiently.
Feel free to reach out to the MLS team for further assistance and resources. Let's work together to create a thriving real estate market in the Philippines!
About the Author: Manny Florendo is the National Director of PAREB in charge of MLS. He is the President of Philproperties International Corporation. An International REALTOR® (IRM), Certified International Property Specialist (CIPS), and Pricing Strategy Advisor (PSA) Certified by NAR-USA.