Price your home correctly as soon as you list it for sale
I have often encountered sellers who tell me that they want to price their home higher in order to have a bit of cushioning for negotiating later.
But in reality what this actually does is lower the number of potential buyers that actually see the property when it is first marketed.
For instance if you add 50K to your asking price and list your property at $700K, and a buyer is looking in the $600K – $650K range, you might miss the one cashed up buyer that would give you a clean deal at the $650K.
Would it not be better to price it according to a fair market environment to invite multiple offers?
That way, buyers would bid against each other and will often push the price up over your expected price range.
Supply and Demand
The housing market is governed by “supply and demand” factors.
For instance, if there is a 1-6 months supply of houses for sale then that creates a “sellers market” where there are not enough houses to meet the demand, so sellers are guaranteed a good outcome.
If there is a 6-7 months supply, then it is a “balanced market” where historically, property values appreciate at a rate a little more than the inflation rate.
Whereas if there is 7 + months supply, then this creates a “buyers market”, where there are less buyers in the market, so property values depreciate, and houses take longer to sell.
It is also really important to know your competition and be confident that you have pitched your property in the correct price range, so you don’t miss out on an opportunity of a buyer viewing yours too.
Nobody wants to be on the market for an extended length in time, as that means more marketing expenses, more maintenance costs, more inconvenience in keeping the property like a show home, and eventually less money, because buyers will question what is wrong with it, if they perceive it has been on the market for too long.
Key factors that help influence a sales price
1) The correct selection of a real estate agent and their expertise and experience to accurately price your home in their real estate appraisal.
2) Using the best method of sale to generate multiple, qualified buyers in your property type, price and location, ie: Tender, Auction or Private treaty or BEO ( Buyer enquiry over).
3) Your sales preparation of your home. For example, doing minor repairs and improvements, and perhaps home staging, if you can afford the outlay, can make a significant difference to the price that a home might sell for.
4) Knowing and identifying your immediate competition is important so that your property is on the shopping list of the best buyers.
It is always cheaper to do the job right the first time
2020 e-propertymatters.com| Author| Kathryn