How To Price Your Property Right For Sale
There are really only two factors that can ensure a fast successful sale and that is…Presentation and Pricing. Say it to yourself over and over again so that it is so embedded in your mind that there is no chance that you will forget the importance of these factors. Fully immerse yourself in this guide on how to price your property right for sale. We will have a look at how to get the pricing of your home absolutely right, despite it being an inexact science at the best of times.
Image by Domain
The way that most people find out the apparent value of their home is by calling in two or three local Agents and asking them for an appraisal of their home. They will all inspect the home and then generally come back with a written report, showing recent sales in the area, the current homes for sale in the area, market trends, graphs, median price ranges and often a lot of irrelevant information which is used to pad the report.
If you are lucky you will get three very similar opinions and be pretty confident that the price range has been set accurately, but often there is quite a large variation of prices suggested by each Agent, which just makes it all the more confusing for you.
The reason for this variation can be a lack of objectivity, lack of knowledge, lack of experience, or any number of other elements that can influence the perception of value that an Agent may have of a particular property. Considering that even an Agent can be influenced in this way demonstrates how vital it is to create this emotional reaction with the buyers who will be looking through you home, so that they will perceive it as more ‘valuable’. It is precisely why great presentation ‘grows’ the value of your home.
So, back to pricing. At the end of the day it is very simple:
You have to offer more appeal, more value and create more emotion around your home than any other property that is currently on the market in a similar price range.
Assuming that your home now looks as good as it possible can without any major outlays….how do we set the price? Let’s put on our buyer’s hat and think of a price which is in the ballpark of your house. Let’s say $1,000,000. Now here is an exercise for you.
Hop on your favourite property website with that buyer’s hat on, search for homes for sale in your area and choose a price range of $900,000 to $1,100,000. Now go surfing and see what’s out there.
If you see one on the market for $950,000 take a closer look and compare…..is it better than yours, or not as good? Is it bigger or smaller? More modern or a little dated? Is it on more or less land? Is it in a better location, or on a busy road?
Image by The Property Exchange
All these things need to be taken into consideration when making a comparison. Then make a final judgment as to whether you believe it is worth more or less than yours. Write is down and give it a little arrow. Make a list as follows:
15 Appleblossom Street $1,090,000 ↑
23 Comden Way $925,000 ↓
16 Brilliant Place $975,000 ↓
14 Cove Road $1,050,000 ↑
Then put them all in price order and see where yours lies.
Now, remember this is simply an exercise to deduce an educated approximation – it will never be fool proof for two major reasons;
- You are looking on the internet, so not getting a true indication of the other homes. You are probably getting fooled by those fish eye lens photographs that turn a bathtub into a swimming pool and a closet into a formal lounge.
- I know you’re trying really hard not to be, but you are probably just a wee bit biased toward your own home, aren’t you?? Just a tad emotionally attached perhaps? Of course you are, and that’s perfectly normal. However, it can create additional enthusiasm about the home’s good points and some selective blindness about its weaker areas.
How many times have I heard statements like:
“It doesn’t bother us in the slightest parking on the verge;
we’ve never had any trouble”
“It’s not that busy a road and it’s dead quiet at night”
“We’ve never needed air conditioning; the house has always stayed cool”
“What do you mean they said it needed too much work? What work?”
These may all be things that you have long got used to, so much so that you don’t notice them anymore, but to a buyer who is experiencing your house for the first time, they will have their antennae out looking at every single aspect and making comparisons from one home to the next. Therefore it’s imperative that you consider the good and the bad when setting a realistic price with your Agent. A good Agent will point out the pros and the cons to you and how they should influence the listing price.
A man’s homeland is wherever he prospers. – Aristophanes
Don’t regard this as your Agent being negative; they will merely be giving you the view of an outsider without the emotional attachment.
A good local Agent will have seen all your current competition and recent sales ‘in the flesh’ as it were, and be able to draw accurate comparisons to yours. From a good examination of comparable listings and sales, you should be able to settle on a price that both you and your Agent are comfortable with.