The property market is a dynamic environment that is influenced by a variety of factors. One of the most fundamental and important considerations when selling a property is pricing. A frequently heard phrase in the property industry is:

“If the price is in line with the market, the property will sell.” But what exactly does it mean to price a property in line with the market and why is it so crucial to the success of a sale?

Market-driven pricing

Market-driven pricing in Luxembourg means setting the price of a property so that it corresponds to current market conditions. This requires a thorough analysis and understanding of the current market situation. The main factors that need to be taken into account when setting a price include

  • Supply and demand: if demand for property in a particular region is high and supply is limited, higher prices can be achieved. Conversely, high supply and low demand will result in lower prices.
  • Comparable sales: Looking at recently sold properties in the same area that have similar characteristics will give an indication of the appropriate price. These comparable properties are often referred to as “comps” (comparables).
  • Condition and location of the property: The condition of the property, including age, renovation status and any defects, as well as the location (e.g. neighbourhood, proximity to schools and public transport) play a crucial role in determining the price.
  • Economic factors: General economic conditions such as interest rates, employment rates and economic trends can also have an impact on property prices.

Why is the right pricing so important?

Setting the wrong price can have a significant impact on the sales process. A price that is set too high can deter potential buyers and result in the property remaining on the market for longer. This in turn can give the impression that there is something wrong with the property, making it even more difficult to sell. Studies show that properties that are on the market for a longer period of time often end up selling for a lower price than if they had been offered at fair market value from the outset.

On the other hand, while a price that is too low may attract buyers quickly, it may mean that the seller does not receive the full value of their property. It is therefore crucial to find a balance and set a price that is both attractive to buyers and reflects the value of the property

The role of estate agent

An experienced estate agent can help determine the right price. Through their market knowledge and experience, estate agents can provide a sound valuation of the property and assist the seller in determining the price. They use various valuation methods and market analyses to ensure that the property is offered at a competitive price.


Market-driven pricing is a decisive factor when selling a property. It requires thorough market analysis and consideration of various factors in order to achieve the best possible price. A correctly set price can speed up the sales process and ensure that both seller and buyer are satisfied. Ultimately, “If the price is in line with the market, the property will sell.”