The most important aspect of selling your home is getting the pricing right on your property. The right price will ensure that your home spends less time on the market and attracts the right buyer.
The market value of your property IS NOT
- what you paid for your home;
- the amount that you need in order to purchase a new home;
- the price you would like to achieve for your home;
- necessarily the value agents put on your property; or
- what a valuator says your home is worth.
MARKET VALUE IS DETERMINED BY THE CURRENT MARKET.
The pitfalls of overpricing
- Be aware of over valuation because it can damage the sale of your house.
- An unreasonable asking price discourages prospective buyers.
- Buyers purchase by comparison and if the property is priced above similar competing properties, it will eliminate offers.
- A property that is priced too high will stay on the market too long leading to overexposure.
- An overpriced property limits financing.
- It eventually means a lower price.
Getting it right
The correct method to price a property is to use a Comparative Market Analysis (CMA). This determines the value of a property in comparison to other comparable properties which have recently been sold or are currently for sale under the same market conditions. We offer a free comparative market analysis to our clients. The ultimate pricing decision resides with the seller, but your agent has the duty to present you with the relevant market facts.
