Pricing your Property to Sell
The correct pricing of your property is vital to achieve as high a price as possible in as short a time as possible, with the least inconvenience to you, the seller. At the time of marketing, your property must be priced at a level that is competitive with the properties on the market.
BENEFITS OF CORRECT PRICING
Creates an impression of relatively good value. Increases advertising response.
Stimulates buyers interest.
Achieves maximum exposure at optimum time. Compensates for property's shortfalls.
Maintains Sellers negotiating advantage.
DISADVANTAGES OF INCORRECT PRICING
Loses interested buyers. Extends marketing time. Attracts lower offers.
Reduces advertising response.
Do:
- Combine a realistic asking price with an initial surge of interest.
- Maintain your negotiation advantage with realistic pricing.
- Avoid over-exposure from unrealistic pricing.
Don't:
- Eliminate buyers by out-pricing them.
- Choose an agent on "promised price': but on competence.
- Spoil your single chance to make a "first impression" on a buyer.
It is vital to continuously measure market response to the property once it is offered for sale, as well as to monitor market trends in the area and make the necessary adjustments indicated by these trends. This is why feedback from agent to seller is so critical and why it is advisable to select one agent to manage the responsibility of marketing your property.
This is the most effective way to ensure that the signboard marketing strategy serves the goal of finding the right buyer. One of the biggest mistakes that sellers make in today's market is setting the selling price of their home higher than market-related values due to the emotional attachment they have to their home. However, a buyer will not have the same view of the property and will rather look at the property's location and the features it offers. Instead of leaving room for negotiation, inflating the selling price of a home could push potential buyers away and reduce the chances of selling the home in the shortest amount of time, if at all.
Overpricing makes other homes in the area with similar features look far more appealing as the only thing that separates the two would be the price. Some buyers may not even bother taking the time to view the more expensive home if they feel that the asking price is not within market value. Instead of opening the door to possible negotiations, all that has been achieved is making correctly priced properties look like a bargain. According to statistics, the longer a property is on the market, the wider the gap between asking and selling price. Homes on the market for longer than 24 weeks usually end up selling for 10% less than their asking price, on average.
An experienced real estate agent that specialises in an area will be able to assist with correctly pricing a home in line with the current market value.
An experienced area specialist will also be able to provide data on market value for the area, such as the prices of homes that were sold in the area over the last six months. This information can be used by the agent to provide the seller with a comparative market analysis, which will assist to correctly price the home. Once the home is priced correctly, there are a few things that could be done to create a good first impression to improve the chances of a quick sale including applying a fresh coat of paint and ensuring the garden is neat and tidy.
Author Campbell Property Group
