My Villa is Worth a Million Dollars! Really?

You sold it for how much?

Entering the market with the wrong pricing can be fatal, especially in Bali where supply is so great and buyers are on the lookout for who is most motivated to sell.

We hear this a lot … “My friend told me a villa in my neighborhood sold for more than a million dollars so my million dollar price is reasonable compared to his.”

Many vendors in Bali think this way, but unfortunately it’s not the way to go.

What many property owners don’t realize is markets change very quickly. What happened 3 weeks ago is often outdated now. Today is a different market to yesterdays.

Supply and Demand

When it comes to valuing a property one of the easiest ways is to compare prices of what’s recently been sold in the neighborhood.

But there’s a catch.

Marketing a property above or below the most recent sold prices to test the market can sometimes be a mistake because the price you enter the market with determines how people perceive and receive the offering.

And the wrong price is the kiss of death.

A perfectly good example is when a vendor wanting to sell his home approached me recently. It really was a beautiful property full of modern touches and lovely gardens.

We discussed the value and of course, he had a figure in mind and wouldn’t listen to my professional opinion. I ended up refusing the listing and asked him to contact me in six months knowing that it wasn’t going to sell at the price he was expecting.

Six months went by and the property remained unsold. No surprises there then.

First Impressions count

I contacted him and asked if he still wanted to sell and if he would now consider reducing the price. He reluctantly agreed and we moved forward.

But here’s the thing. The initial price he went to market with created a bad first impression. It was clearly over-priced and everyone knew it. And now he was reducing the price, potential buyers saw a desperate vendor and also an opportunity to negotiate down even further. The low-ball offers started rolling in.

None of these low offers were accepted. Maybe the vendor’s pride was hurt but the truth is by entering the market with an over-priced property he’d shot himself in the foot! And it would be difficult for him to recover and keep a smile on his face.

A lot of the time the price you want is a price you can’t get, because the market is not willing to pay it. Something is only worth what someone is willing to pay!

If you’re thinking about selling your property, my advice would be to listen to a professional who knows the market, he or she will definitely be able to help you determine a price that’s attractive enough to get attention, the question is: are you ready?

First published in Gapura Bali

Seven Stones Indonesia is a property company headquartered in Bali, Indonesia, with a mission to help people who are interested in buying and selling residential and commercial real estate.

If you’re thinking about property, ROI, capital gains or lifestyle investments in Bali, Jakarta, Surabaya, and Indonesian’s Eastern Islands and need some friendly advice and guidance then why not email hello@sevenstonesindonesia.com or check out Seven Stones Website | Seven Stones Linkedin | Seven Stones Facebook

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.