How do I determine the right selling price?

The basis: Market analysis and comparison objects

Before you put a number in the ad, you need to become a market researcher. An optimal selling price doesn't just fall from the sky; it's derived from the competition.

Check out the current listings on major portals like Homegate or ImmoScout24. Look for properties very similar to yours (location, year built, size). But be careful: the prices online are asking prices, not final sale prices. An optimal selling price is often somewhat lower than what's listed, as these usually include room for negotiation.

If you see comparable houses being offered for 1.2 million Swiss francs and have been online for six months, that's a warning sign. An optimal selling price would likely be set significantly lower to generate momentum. An optimal selling price is based on actual transactions, not on the neighbors' expectations.

The danger of "testing": Why too high is fatal

"We can go in high and then down." This is the most common mistake made by private sellers. This strategy almost always prevents achieving an optimal selling price .

Why? New listings receive the most attention in the first 14 days. If the price is unrealistic during this phase, potential buyers will move on. If you lower the price later, the property will seem like a white elephant. "Something's not right here," buyers will think. An optimal selling price has to be right from the start ("Hit the Mark"). Studies show that those who start with an inflated price often end up selling below market value because the property is stigmatized. An optimal selling price, on the other hand, generates immediate interest and can even trigger a bidding process with multiple interested parties.

Utilizing psychological price thresholds

An optimal selling price also takes into account people's search habits. Buyers often filter in increments of 50,000 or 100,000 on online portals.

For example: You want 910,000 francs.

• If you set the price at 910,000, buyers searching "up to 900,000" won't see you.
• An optimal selling price, from a psychological perspective, could be around 895,000 or 899,000.

This will push you into a new search category. The higher demand could ultimately lead to you ending up back at your desired 910,000. An optimal selling price is therefore also a marketing tool to maximize visibility. An optimal selling price plays on the psychology of "threshold prices" (e.g., 990,000 instead of 1,010,000) to drastically expand the pool of potential buyers .

Emotional value vs. market reality

For you, the house is full of memories: your children's first steps, the apple tree you planted yourself. For the buyer, it's a property in need of renovation. An optimal selling price must exclude these emotions.

This is known in technical terms as the "endowment effect" : We value things more highly simply because we own them. However, an optimal selling price is objective. It takes into account that the buyer will have to remove the old bathroom . If you ignore these costs, an optimal selling price is unattainable. You have to see your house through the eyes of an outsider. Only by maintaining this distance can you find a price that is also optimal for the market.

Negotiation leeway: How much room for maneuver is necessary?

Should an optimal selling price include a buffer for negotiations? Yes, but in moderation. In Switzerland, a discount of 5 to 10 percent is common. However, if you add a 20 percent markup just for "security," you'll scare off buyers.

An optimal selling price is calculated to be attractive while still leaving you a small margin to ensure the buyer feels satisfied with the sale. If, however, the price is set too tightly (fixed price), you must communicate this clearly. An optimal selling price can also be strategically set low to provoke a bidding process (bait price). This, however, requires considerable experience and composure.

Online calculator vs. expert assessment

Online valuation tools give you an initial range. However, they rarely allow you to pinpoint the optimal selling price . The algorithms don't take into account the view or the noise level. An optimal selling price requires fine-tuning on-site.

Factors that must be considered to determine an optimal selling price :

• Micro-location ( sunlight , noise ).
• Condition of the building structure ( investment backlog ).
• Legal Special features ( easements ).

An optimal selling price results from a combination of big data (online tools) and human expertise. Never rely on just one source if an optimal selling price is your goal.

Conclusion

Pricing is the foundation of your sales success. An optimal selling price is the result of a thorough analysis of market data, competitor offers, and the condition of your property. It lies precisely where demand is highest, without giving money away.

Beware of emotionally driven gambles and the tactic of "going in high first." An optimal selling price generates immediate demand. Those who gamble too much often end up losing time and money. Take the time for thorough research, because an optimal selling price is the key to a quick and profitable sale.

If you are looking for support with precise valuation and the right strategy, Loft offers modern solutions to help you navigate safely through the sales process.

Glossary

• Optimal selling price: The price that, taking into account the current market situation and the condition of the property, generates the highest demand and leads to the best possible final sale price.
• Asking price: The price at which the property is advertised. It is often the basis for negotiations and is usually slightly higher than the actual selling price.
• "slow-moving property" effect: The phenomenon that properties that remain on the market for too long (due to excessively high prices) become unattractive to buyers and often have to be sold below value.
• Threshold price: A price just below a round sum (e.g. CHF 995,000) that appears psychologically more favorable and is easier to find in search filters.
• Bidding process: A sales strategy in which interested parties submit offers. A low starting price (or an optimal selling price ) is intended to drive the price up through competition.