One of the biggest mistakes people make when selling a house is getting the pricing wrong. The worse thing is underselling a house, where it sells quickly and for the asking price, but there’s also the risk in marketing it too high, it sits on the market for too long going stale and not selling at all. Keep reading to learn about How to price your property correctly.
I’ve come up with some methods that can help you uncover the true value of your property.
GAUGE LOCAL PROPERTY PRICES
With residential properties look at homes for sale within a 3 – 5 km radius from your property and see what price these homes are. Put into consideration information like land size, bedrooms, pool and age. If it’s a rural property you may need to do a 10 km radius. This will show you what properties are currently on the market and would be considered what you would be competing with . As an example. If you hope to sell your property for $2M, but most properties near you are being advertised for $1.6M. then its most likely your property is not worth $2M unless it has some considerably better things about it, than the others.
You need to consider this important will show you the advertised price of each home. Which is not what they have sold for but is a good easy start to get a price estimate for your own home.
PRICE YOUR PROPERTY : REALESTATE.COM.AU SALE PRICE
More accurate information to work out your house price, is looking at what has sold.
If you go to realestate.com.au they have a sold section where you can enter your suburb, then filter out property types, sales dates and t will show you wants recently sold allow you to also see photos of the property to be able to compare it to yours.
ONLINE PROPERTY TOOLS
I’ve mentioned in another article House Valuation Tools these should almost be illegal. Because while they will give you a very rough estimate of a property value they can be very misleading. So sure have a poke around and have some fun but just don’t rely on them. If I had to choose just one it would be realestate.com.au RealEstimate.
You search for your property address. You then need to log into your realestate.com.au account or make a free account . Then realestimate will show you information about the property value.
GET A PROPERTY APPRAISAL BY A REAL ESTATE AGENT TO UNDERSTAND A VALUE ESTIMATE
An easy way is to get a licensed real estate agent to do a sales appraisal. Usually these are done free of charge as the agent does these in the hope that if you do choose to sell your house you’ll sell through them. You can even ask an agent to do a remote sales appraisal where they don’t even come to your home but just do research online.
Detailed Sale Report
The most important thing when getting a sales appraisal from a real estate agent is that they supply you with comparable sales you can visually see the price they are giving you is realistic and not a figure they just made up.
Typically, real estate agents have access to RP data or Price Finder to obtain detailed information of other sales in the area to create a property report.
Some time ago now I did a real estate appraisal where the owner had several sales agents with prices ranging from $650,000 to $800,000. My real estate appraisal was $585,000. The property ended up selling for $605,000. It turns out I was the only real estate agent who supplied information on comparable sales as evidence to show the properties value. The other sales agents just guessed what they thought the property would sell for.
LICENSED PROPERTY VALUER FOR A PROPERTY VALUATION
Licensed real estate agents are not licensed valuers, so they can only supply you a sales appraisal. If you would like a property valuation you need to engage a licensed valuer. Valuers have usually done a university degree and are far more qualified than a real estate agent to value your property. It’s a myth that licensed valuer undervalued properties. Valuers can do a bank valuation, which can be conservative, or they can do a sales valuation which is what they believe the property will sell for in the current market. Depending on the property size and value this would cost you around $600.
CHECK THE MARKET CONDITIONS OF HOUSE PRICES
This is a common theme with anything related to buying or selling property, but nevertheless an important one. If the market is slow, you will have to price your property more competitively to sell. You also need excellent marketing and the best real e agent.
PRICE YOUR PROPERTY BY GETTING PRICE FEEDBACK FROM BUYERS IN THE MARKETPLACE FOR PRICE ESTIMATE
Something we have been doing a lot of recently is launching a property for sale for the first 14 days with no price. Then during this time getting feedback from buyers on price and pricing the property accordingly. Lots of people talk about how they hate seeing properties with no price, but the truth is motivated buyers contact us regardless, in fact usually lots, and it’s only for the first 14 days the property has no price.
DON’T OVER PRICE, AND DON’T UNDER PRICE YOUR HOME
Well it’s quite obvious why you wouldn’t want to under price your property, but why is it a bad idea to over price your property? Well I’ll tell you, properties tend to get the most amount of viewings during the first 2 or 3 weeks of the property being on the market. As the old saying goes, you only get one chance at a first impression, so if your property is overpriced the buyer’s impression of your home is going to be a negative one, and they won’t buy. You want to give buyers a reason to buy, not to walk away, and by overpricing your property you will force away the majority of buyers.
For these reasons it’s imperative that you do adequate research into all the things we’ve listed today, in order to obtain an accurate price for your property. We know selling a property can be difficult and stressful, and following our checklist while you have a job and family is extremely difficult and time-consuming. So why not let the team at Asset Agents take some burden off your shoulders and help you out? Feel free to , and see what we can do for you.
If you are on the Sunshine Coast Qld and interested in a remote sales appraisal, shoot me your details, and we can get one out to you or contact your local agent they’d be more than happy to help.
Summarising how to price your property correctly.
1. Looking at properties for sale
2. Look at properties that have sold
3. Use online estimate tools
4. Get a real estate agent to do a real estate appraisal
5. Pay for a licensed valuer.
6. Get Feedback from buyer about your property.
Other helpful information about house prices
What’s your investment property worth
Byron Miller has over 25 years experience in the real estate industry. A licensed real estate agent in Qld. Byron is based on the Sunshine Coast and sells properties for home owners and property investors .
