How to price your home in this current market.
It can be hard to price a property correctly. Many sellers ask too high a price and throw away their chance for a good result.
On the other hand, a lot of sellers do the opposite and list their property at a bargain price in order to secure a quick sale.
So, how can you get the max in the current market without having to wait several months for a sale?
The risk of overinflating the price.
If you think it’s worth listing your property for what it was worth 12 months ago, think again.
The market has changed dramatically over the past year or so, with record breaking growth in many capitals slowing, and even going backwards in some areas.
If you put your property on the market for more than it is worth you won’t be likely to sell it very quickly.
It will probably turn stale and you will have to renegotiate your price downwards.
Buyers will question why it hasn’t sold – and they will wonder if it is worth buying.
They will stay back and wait to see if you will drop your price even more, and you will be more likely to sell it for a bargain price out of desperation.
The risk of asking too little.
If you put your property on the market with a lower price guide than what it is worth, you will be more likely to sell quickly – but won’t get the max.
Now that properties are no longer selling like hot cakes in many areas, it is less likely you will find buyers willing to up the purchase price to secure a deal. Demand isn’t what it used to be.
How to figure out a realistic price.
Before coming up with a selling price, make sure you take a good look at the market.
Is it likely to go backwards over the next six months?
What do recent sales indicate and how much are current properties listed for?
Are you likely to get a better price if you renovate?
Many people think they should renovate first or wait for the Spring market – but, depending on the outer market, this may cost you more.
If you wait another six months to sell, you may get much less as prices drop further.
Who is getting the max in this market?
Those who are pricing their properties realistically on the upper end of the scale are the ones who are getting the max at the moment.
Coming up with a price that is in line with current sales is key. Using a competent selling agent that knows how to market the property in its best form will make a huge difference to the end result.
Just like buying properties, it is important not to let emotion stand in the way. You may think your property is worth more than what sales data indicates, but value is not an intrinsic thing – it really depends on what others are willing to pay.
And, if the majority of buyers out there are finding it tough, you simply won’t achieve as good a result as when the market was booming.
Have you put any properties on the market recently? Please share your experiences in the comments section below.