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Realistic Pricing Is The Key To Selling Your Home In A Price Sensitive Market

By Silvia Wei

The price you are asking for your property is a key decision when selling your home. The property market is very price sensitive at this point in time and many buyers will overlook a property if they feel it is overpriced. However, it can be very tricky determining and pinpointing the value of individual properties in the current climate and it certainly demands expertise and experience to price realistically and correctly. If your home is priced too high, you may price yourself out of the market and may not sell it and of course conversely, price it too low and you may miss out.

How Much Is Your Property Worth?

One way is to see what similar properties have sold for, in other words established market evidence. Choosing the right estate agent is also vital as a good agent should be setting a price that is as high as possible but one that still attracts viewers. Other key elements include whether time is of an essence or achieving a certain price. For a really quick sale, your property will have to be priced accordingly. Always bear in mind that typically the most interest for your property will come in the first few weeks of going onto the market.

Getting The Price Right:

  • Choose your estate agent carefully
  • Select a proactive and local agent
  • Understand the market conditions
  • Consider all external influences on the property
  • Make good first impressions with the presentation of your property

Naturally, sellers are looking to get as much as possible for their properties whereas a buyer is trying to pay as little as possible. It’s a real balancing act. In general, there has been a small rise in house prices with buyers still remaining price-sensitive which is reflected in the number of sales that are actually agreed. Buyers remain quite choosy and a sale will only be achieved if the asking price is tempting and if you find that there is little initial interest in your property, it’s a good idea to reduce the price quickly.

A Good Estate Agent will:

  • Proactively sell your home
  • Have detailed local knowledge of the area
  • Know the market
  • Be recognised, trusted and respected
  • Use excellent promotional material including photographs
  • Keep you continually updated
  • Respond to feedback
  • Negotiate the sale
  • Measure the strength of the potential buyer
  • Monitor the chain

Overpricing Will Ultimately Achieve A Lower Price

CoreLogic.com.au recently reported that, “Sellers were 40 percent more likely to sell if the property was correctly priced when it first came to market.” In this price-sensitive market, overpricing will result in a property sitting on the market until the price is dropped and by this time, buyers will have lost interest and ultimately and inevitably a lower price will be achieved.

Conclusions

It’s important that sellers get good local advice about property prices to ensure that this represents the local market conditions. Potential buyers are active but they are looking for good value and of course the right property. Tempting and realistic asking prices could be key for actually selling your property. The price should maximise the potential of your property.

Your home is only worth what somebody is prepared to pay and so it is vital that you are advised well and know what it is worth as opposed to hoping that it is worth a certain price.

What To Do Next

If you want a realistic and achievable price set for your home, do get in touch with us on 02 9289 8989. Our knowledgeable and experience team will be delighted to help you.

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