How to price your property in Colombia

Price decides how many people open your listing. Too high and nobody calls; too low and you lose money. Setting it well isn't guesswork: it means comparing with what is actually being offered and sold in your area.

1. Find comparables

A comparable is a property like yours that is for sale or rent right now. Gather five to ten:

• Same area: the same neighbourhood or, better, the same complex or building.
• Same type: apartment with apartment, house with house.
• Similar size and layout: don't compare 60 m² with 120 m².
• Similar age and condition.

You can find them by filtering by city, neighbourhood and type in properties.

2. Work out the price per square metre

Divide each comparable's price by its area. Drop the highest and the lowest, and average the rest. Multiply that figure by your property's square metres: that is your starting point.

Check which area is being advertised. Built area (área construida) includes walls and ducts; private area (área privada) is what you actually use. Always compare like with like.

3. Adjust for what makes yours different

• Adds value: a high floor with a view, extra parking, a storage room, a recent kitchen and bathroom renovation, good light, a balcony or terrace.
• Takes it away: a ground floor on a noisy road, no parking, very dated original finishes, damp, a high building fee for what it offers.

Advertised prices are asking prices, not closing prices. Deals normally close a little below, so leave a small margin, but don't list far above the market.

4. If you need a formal figure: a valuation

A market valuation (avalúo comercial) is done by an appraiser registered in the Open Register of Appraisers (RAA). It is useful for inheritances, divisions, loans and difficult negotiations. Don't confuse it with the cadastral value (avalúo catastral), the figure the municipality uses to charge property tax, which is almost always lower than the market value.

5. For rentals: the rent

• Compare with similar rentals in your area, just as for a sale.
• For urban housing, the law sets a ceiling: rent may not exceed 1% of the property's market value.
• In practice the market usually sits below that ceiling. Make clear whether the figure includes the building fee.

The rest of the process is in How to list a property for rent in Colombia.

Common mistakes

• Pricing at "what I need to get". Buyers pay what it is worth on the market, not what it cost you or what you owe.
• Adding everything you spent on renovations. A renovation raises the value, but rarely by the same amount.
• Starting high "to come down later". The first weeks bring the most views. If the price scares people off, you lose them.
• Never moving the price. If a month passes with no contacts, the market has already answered.

Frequently asked questions

How often should I review the price?

Every two or three weeks, look at how many people viewed your listing and how many contacted you. Many views and few contacts usually mean the price is high for what the photos show.

Does lowering the price look bad?

No. A timely adjustment beats months without viewings. Changing the price on your listing takes effect at once.

And after the price?

The photos and the text: Photos and listing tips: how to make your property stand out.