How to price your home for sale

To achieve a quick sale at the best price, it’s important to have the right home pricing strategy in place.

With fair market value a priority, homeowners wishing to sell or rent out their properties, it’s critical that the home is accurately priced, a market-related price. The property market reacts as the balance between demand and supply shifts, so pricing your home correctly requires expert advice.

Market research

Today’s buyers are extremely savvy and research the market thoroughly before committing to a purchase decision, so a property mustn’t be brought to market at an unrealistic price. If you don’t capture the market within approximately the first two weeks, then it’s most likely you’ve lost those prospective buyers.

Buyers and offers

Bear in mind, buyers and particularly first-time millennial purchasers, are watching market trends and prices achieved to ensure they make informed intelligent offers. “They tend to have an excellent understanding of the market as they look at listings by different agencies. If a seller is asking way over market price, they will either not attract buyers or will elicit an offer way below asking price. To ascertain if the market is dropping, the difference between a well-considered agent valuation and the actual price achieved for a property should be considered and not the difference between a seller’s wish price and the selling price, as the wish price was not realistic.” Says the head of training for Pam Golding Properties.

Sellers and negotiation

It’s a misconception among some sellers, that a property should be pegged at a considerably higher price than its market value, to allow for any downward negotiation. An inflated price might result in multiple price reductions, which could ultimately let the home sit on the market for long. Buyers look out for price reductions and then see this as an opportunity for a bargain, which is detrimental to achieving the best market-related price.

Well-priced houses sell faster

Set your price in the context of prices achieved for similar homes sold in the area. Ask your agent for a comparative market analysis. Some agents try to lock sellers into mandates by overpricing, only to be let down when no buyers visit or a low offer comes in.

Buyers are informed as they do their homework. They compare properties to see what else is for sale, the condition, location and price compares. If it’s well-priced they will offer close to the asking price and if the area is very much in demand a buyer may even offer more than the asking price.

We are currently experiencing a shifting market where buyers are starting to resist prices. With the rising cost of living, people have less disposable income and are generally more price-conscious. This makes it all the more imperative that homeowners who want to sell their properties ensure these are priced correctly.

Sourced by: Private Property