Market Pricing and Exposure Period: Trinidad & Tobago
Pricing to market is not an exact science and as the economy, trends and consumer behaviours shift and change, so too does the average market price of a listing. However, our aim as property professionals is to match the right buyer to the right listing in the shortest time possible. To achieve this, we assist our clients by providing comparable properties to determine a suitable list price as close as possible to market price in an effort to reach qualified buyers.
Under normal circumstances, an average transaction in the current residential sale market typically takes 3 to 6 months. This window of time is the exposure period; the length of time a property is exposed to the market prior to sale, given the list price. Therefore, if the property is on the market longer than this window of 3 to 6 months, the list price should be reduced, closer to market price of a comparable property.
To show the correlation between the exposure period and the percentage difference of list price over market price, all properties included in this analysis were sold during the years 2017 and 2018 and are residential sales, including land, houses, townhouses and apartments in high-demand areas.
Therefore, the main variable within control in this analysis was the list price. Our analysis shows the larger the disparity between the list price and market price, the longer a property would be exposed to the market unsold.
