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Doing your homework when setting your price

Selling a property can be a positive experience and doing your homework before your property goes on the market can make the difference between a good experience and a virtual nightmare.

When a property buyer is looking to spend their money, most would understand the importance of research before they make a purchase. Buyers are doing their research. They are looking on the internet at properties for sale, inspecting properties for sale and researching on what has recently sold. The buyers, armed with this knowledge will be comparing against your property and determining if your property represents value.

Most property owners that have successfully sold real estate would state that there is one fundamental reason why a property doesn’t sell successfully and that is the property was overpriced.

Statistics have shown that when a  property  is overpriced  it may not only take longer to sell but in fact sell for less than what it could have had it been priced correctly in the beginning.

As the seller, by completing some diligent research, you will gain a basic understanding of your local property market and best avoid the pitfalls and hopefully sell sooner and for a price you’re happy with.

Recent comparable sales

Look at other properties that compare to yours that have recently sold. How quickly did they sell and what was their selling price? This will give you an understanding of what buyers are prepared to pay for properties that compare to yours. Make sure you try to compare at least 3 recent sales and don’t compare sales that are more than 3 months old from the sale date. If you are looking to sell with an agent, unless your property is very unique, they should be able to supply you with these facts when giving you a market appraisal. If you’re considering DIY then you can download a recent sales report for a small fee from property websites such as RP DATA -http://reports.rpdata.com.au.

Comparable properties on the market

Consider other comparable properties currently for sale, what are their asking price and how long have they been on the market? You can gain this information simply by reviewing current and past newspaper advertising or contacting  an agent, You can even arrange an inspection of a few properties, this way you can better compare them to yours, after all they will be your competition and having your property prices slightly more competitively may gain you an edge with the buyers.

What is your local market doing?

Which way is your local market currently moving? Are prices going up or down? Are properties staying on the market longer than usual? There is no status quo with the property market, and pricing is determined by supply and demand. Gaining this basic knowledge of your local market will not only assist with your entry price but also to adjust your price quickly and with confidence if necessary.

Speaking to others who have been successful

Speak to other property owners who have recently sold. Find out what their experience has been like selling in the current market and what would they have done differently or not, if they had to sell over again.

Obtaining a registered valuation

Another way of determining your properties value is to have a registered valuation completed. This may cost you money but it can be a very valuable tool to have in your selling kit, especially if your property is a bit unique and you are finding it difficult to set a price. A registered valuer will take more of a mathematical approach to your properties value. In some cases the price may be a bit conservative but at least it can give you a sound platform to work from.

Pricing Structures

Today, there are many options to choose from when deciding how you will advertise your price. Some of the pricing examples are:

• Fixed price $100,000
• Price Range $80,000 - $110,000
• Offers Invited
• Offers Above $100,000
• POA
• Auction

Each method of pricing can have advantages but it really does boils down to what you’re comfortable with. As long as you have the facts to verify that the chosen method is giving sellers results in your local market.

Do you have a selling story that may help other readers? was it successful or a disaster?

Please feel free to post a comment here