PRICING YOUR HOME TO SELL

WHAT GOVERNS THE SALE OF YOUR PROPERTY?

1. The Correct Market Related Price…..Resist putting it on the market

at an unrealistically high price, buyers do their homework and compare similar houses in the market. As a result, the house might be on the market too long, attracting even lower offers until at last, it even sells below true market value. A realistic price generates strong and genuine buyer interest and keen competition – possibly even resulting in a sale at a figure higher than the asking price.

• ….The Ideal Location of the Property….Buyers do spend time comparing different properties in different areas and locations
• ….The way in which you Present your home….
• ….And the Agent of your choice….It may not be easy for you, the

seller, to accurately and objectively assess the house’s true market value, while a reputable agent will do this, you have to be aware that some less ethical agents may “lure” you with inflated estimates of the value of your house only to secure a sole mandate

Once an agent has you committed on the strength of a high valuation, you may find you have to drop the asking price – even before the house is advertised. This is a clear indication of an unrealistic price.
If the agent has priced the house realistically, he will be reluctant to have you accept a lower offer, and will take time and effort to convince a buyer of its true value relative to comparable properties.
Obviously when selling, you want the highest possible price. However, on the other side of the coin, no buyer will pay an unrealistic price for your house.
While the seller is the final arbiter of what he is prepared to accept or reject, it is the buyer and not the seller or his estate agent, who determines the real market value of the house through comparison with other properties on the market. If buyers can relate to this amount you stand the best chance of getting your price.

EVERY PROPERTY HAS MORE THAN 1 PRICE…

1. What you as the seller thinks it’s worth.
2. What the Agent values it at.
3. What the Buyer is prepared to offer
4. The Final Settlement Price
5. The value which the bank will grant a bond for  

It is easy for an agent to put a price on your home without doing the necessary market estimates, but if this price is too high and the prospective purchaser does not find the value compared to the price of other houses in the area, the house will not sell. Eventually this will result in a reduced sale price. Your home should NEVER become “stale”

WHAT IS THE MARKET VALUE OF YOUR PROPERTY?

1. What you paid for your home, has nothing to do with its present value
2. What you need to purchase a new home, doesn’t determine its value
3. The price you would like to achieve for your home doesn’t control the price
4. The value other agents put on your property is not always accurate
5. What I say your home is worth need not necessarily be correct
6. What a valuator says your home is worth doesn’t determine the price in the market

THE BUYER determines the value of your home based on the comparisons he / she makes to other houses currently in the market.

PLEASE BE AWARE OF OVER VALUATION – IT CAN DAMAGE THE SALE BECAUSE:

• It loses prospective buyers
• Reduces advertising response
• Buyers reluctant to offer
• It reduces the agents efforts
• It reduces the Agents enthusiasm
• It limits financing
• It is used as a bouncer
• Price reductions necessary - means a LOWER PRICE
• Extends marketing time
• Attracts lower offers
• Property becomes over-exposed
• Discourages buyer viewing
• Competing properties become more attractive
• Best marketing time is lost

Price creates interest, price your property at market value and when the buyers compare your property at market value to other properties which are overpriced, your property comparatively will look like better value. Buyers buy by comparison; the more buyers who want it, the more activity there will be and the better price the seller will achieve.

ANSWER THESE QUESTIONS FOR YOURSELF;

• Is the local property market a buyer’s or seller’s market? Is it rising, falling or stable?
• Did I base my market value on actual neighbourhood “SOLD” prices?
• Did “for sale” prices influence my thinking?
• How many properties in the area are competing against mine right now?
• How does my property compare (size, accommodation, features, extras, security, etc) with other properties on the market?
• How long have they been on the market and for what price?
• Have any comparative neighbourhood properties been on the market for longer than 90 days?
• Where does my property slot into the market, upper, middle, or lower?
• Are my own financial needs influencing my asking price?
• Is my original purchase price influencing my current asking price?
• Did I buy during a buyer’s or seller’s market?
• Did I make substantial improvements to the property that justifies my asking price?
• Do I have a real motive for selling?
• Will my asking price together with a proper marketing and advertising plan sell my house or will it be on the market for a long period?
• Am I prepared to pay the asking price for this house? (Will I buy it at this price?)

ADVANTAGES OF PRICING CORRECTLY:

• Sells in shorter period 30-60 days
• Creates impression of good value
• Maximum exposure during initial marketing period
• Good value for money – more buyers will be interested
• Marketing period minimized
• Less inconvenience – with show days, viewer disruptions
• Sure to attract higher offers
• More money in your pocket in a shorter time
• You can plan your own future better, when you will be moving, etc.
• Better opportunities and timing to plan your next purchase
• If you sell in a shorter time it gives you bargaining power for your next purchase

DO YOU KNOW YOU CAN CONTROL ALL OF THE ABOVE – ALL YOU NEED IS OUR PROFESSIONAL ASSISTANCE AND ADVICE!

How saleable do you want to make your home? “THE CHOICE IS YOURS”