The asking price is not the price you should pay. To find out what an apartment is worth, compare at least three similar units in the same building or project, adjust for floor, orientation, furniture and legal status, and only then set a price range. This article walks through four steps in that order.
The asking price is where negotiation starts
Owners usually list above the price they would accept, leaving room to negotiate. Some use the most expensive unit in the building as a benchmark; others are not in a hurry and list to test the market. A listing that has stayed online for two or three months without an offer is also information: the market has not accepted that price. Ask the agent when the listing was posted and whether the price has been changed.
Four steps to compare prices
| 1 | Collect Note the asking price and listing date of 5-7 units in the same building or project with the same number of bedrooms. |
| 2 | Filter Keep units with similar area, the same type of legal documents (pink book or sale contract) and the same handover status. |
| 3 | Adjust Add or subtract for floor, orientation and view. For furniture included, estimate the remaining value after use, not the price when new. |
| 4 | Set a range Write down three levels: an opening offer, a target price and a ceiling, before you meet the owner. |
A low-floor unit facing the afternoon sun is usually cheaper than a high-floor unit with an open view of the same size. Comparing only price per square metre can therefore mislead you when two units sit in different positions in the building.
Items that make the asking price differ from the real price
The same figure can mean different things in different listings. Ask three questions: does the price include furniture, who pays the transfer taxes and fees, and is the apartment mortgaged to a bank. A mortgaged apartment must be released before the title can be transferred, so the timing of payment and handover should be written into the agreement.
| Warning: an unusually low price • A unit priced clearly below others in the same building usually has a reason: a mortgage, a dispute, a long-term tenant or missing documents. • Ask the owner to explain in writing before you pay any deposit. |
How to negotiate with evidence
Instead of saying "the price is too high", bring a table of the comparable units you filtered. Reasoned arguments are easier for owners and agents to accept. Negotiate as a package covering price, furniture, transfer fees and handover date, because many owners give way on the handover date more readily than on the number. An owner who needs cash quickly is usually flexible on price; an owner who is not in a hurry is usually flexible on timing.
When to ask for an independent valuation
For rare units such as penthouses or duplexes, there are very few comparables, so a self-made estimate can be off. In that case, ask an agent who has recent real transactions in the same building, or hire an independent valuer. Also ask about completed transactions in the building over the last six months, because those show the real market price.
| Key points • The asking price is the start of negotiation, not the market price. • Compare at least three similar units in the same building before adjusting. • Confirm whether furniture, taxes, fees and mortgage status are included in the price. |
This article is general information only. Before paying a deposit, have the legal documents of the apartment reviewed by a lawyer or a qualified adviser.
