Determining the right selling price is one of the most critical decisions in the house-selling process, but many sellers make this decision based on feelings or rough estimates, not actual data. A price that is too high will make your house "sit" on the market for a long time without any offers, while a price that is too low means you might lose money that you should have received. Here's how to approach the pricing process more strategically.
Study Actual Transactions, Not Advertised Prices
The most common mistake sellers make is setting a price based on the advertised prices of other sellers in the same area. The problem is, the advertised price (asking price) is usually an aspirational price, that is, the price that other sellers HOPE to get, not necessarily the price that has actually been successfully transacted. There are houses advertised at a certain price but continue to "sit" for months without buyers because that price is actually out of reach for the market.
What is more important to study is the actual transaction price (actual transacted price) — that is, the actual price that similar houses in your area have successfully been sold for in the past few months. This actual transaction data is more reflective of what buyers are willing to pay compared to what sellers hope to get.
Understand the Price Per Square Foot Benchmark
One of the most practical ways to compare different-sized properties is by using the price per square foot benchmark. By dividing the transaction price by the floor area, you get a number that is easier to compare across different-sized units in the same area or project.
For example, if several similar units in the same condominium recently sold at an estimate of RM500 per square foot, this gives you a more solid starting point than just randomly guessing the overall price. However, this benchmark needs to be adjusted according to other factors such as floor/level, orientation, and the condition of the unit.
Factors of Property Condition and Renovation
Two houses of the same size and location can have very different market values depending on their physical condition and the level of renovation. A house that has been upgraded with modern finishes, renovated kitchen, or reasonably updated electrical and plumbing systems can command a higher price compared to a house in its original condition that requires major repairs. Conversely, don't be overly optimistic in assessing your own renovations, not all improvements provide value returns that are proportional to the costs incurred.
Avoid the "What I Paid, Add Profit" Trap
Many sellers, naturally, calculate their selling price based on how much they originally paid plus a profit margin they feel is "reasonable," or based on the remaining loan balance that still needs to be settled. Although this logic can be understood emotionally and financially, it doesn't necessarily reflect current market value. The real estate market doesn't care how much you paid before, it only cares what buyers are willing to pay NOW, based on market conditions, location, and comparison with other available properties.
If the estimate based on this method is significantly higher than the actual transaction data in your area, this is a sign that you need to adjust your expectations before listing your home for sale.
Consider the Tradeoff Between High Price and Competitive Pricing
Setting a price that is too high carries its own risks — besides your property sitting idle without offers, it can also be hit by the "stale listing" stigma, where buyers start wondering "why isn't this house selling, there must be a problem" even though it's actually just a pricing issue. Conversely, setting a price slightly below market value (without being too low) can attract more interest, create healthy competition among potential buyers, and sometimes lead to a quicker sale compared to waiting for a single buyer willing to pay your high price.
Every seller needs to weigh their own priorities — sell quickly with a competitive price, or be patient and wait for the best offer with the risk of a longer time period.
Start With an Estimate Based on Data
Before investing time and money preparing your home for sale, the first smart step is to get an initial idea of your property's current market value. Try the instant valuation tool My Home Value at hartanahbumiputera.com/my-home-value — enter your property details and get a free estimate based on an AVM (automated valuation model) within just a few minutes. After that, you can also choose to get an actual valuation from a certified real estate agent, so that the price you set is truly based on data, not just a guess.
