One of the most important tasks for sellers is to determine a realistic value for their home.
Many elements combine to create unrealistic expectations – sometimes it’s uninformed opinions; the need to recover the cost for improvements made; or the need to fund future plans.
To help understand some of the key principles of correct pricing, consider the following:
Current market conditions will determine the value of your home.
For this reason, you need the facts and figures for your locality. Look at comparisons of other homes including those which have sold, those yet to sell and those representing your competition.
Buyer interest for your property is greatest in the first few weeks of listing.
The best buyers tend to respond early in the marketing campaign – they are the first to be contacted (often before marketing begins) because they are ready to buy immediately. Incoming enquiry is greatest when a listing first feeds to internet portals because active buyers set up automatic alerts to notify them about new listings. If your property is incorrectly priced you might not maximise this window of opportunity. Research shows that buyer interest often drops away after this initial period.
Research shows that properties that sell quickest, also sell closest to or above their initial asking price.
Buyers are always comparing prices. They have done their homework, and so must you. A correctly priced home tends to attract more prospective purchasers, early offers and a quicker sale. When you price your property at the right price point you appeal to and
attract the right buyers who tend to pay better prices.
A home priced higher than the right price position attracts buyers who have greater expectations than the property can deliver.
Potential buyer’s disapproval of overpriced property is reflected either by disinterest or low offers. An overpriced property makes the competition look better, which helps more realistically priced homes to sell.
The longer a property remains unsold, the more likely it will attract a lower price.
Buyers tend to respond less urgently to homes that have been for sale for a longer time. They consider a listing like a perishable commodity whose value deteriorates over time – the longer a listing remains unsold, the lower it’s perceived value.
If you need help understanding the value of your home call us on (06) 835 4321 now and ask for a FREE copy of our booklet Get the Highest Price for Your Property.