How to price your property so it sells
When it comes to selling a property, there are multiple ingredients that add up to a successful sale.
These include the right advertising campaign, the right agent and perhaps most importantly, pricing your property correctly.
So, let’s look at what goes into pricing your property so it sells, while still ensuring you maximise its value.
The price balance
Of all the decisions you make in the property sales process, price is probably one of the most important.
If your home is priced too cheaply, you won’t get the return on an investment that you are entitled to.
Price it too high and it could sit on the market, lose momentum, deter potential buyers and you might be forced to discount it later.
In the current market the right price is also particularly important.
Unlike recent times where prices were quickly escalating in the property market, buyers in many areas are now more cautious, which means properties aren’t returning record breaking prices each and every week.
How the right price helps
When you set and advertise your property at the right price, you attract the maximum amount of qualified potential buyers.
These are people who have the budget to spend the money that your property costs.
When you attract the maximum amount of qualified potential buyers, the question for them then becomes is this the home or investment for me?
When multiple potential buyers think that it might be their future property, it creates urgency and competition which ensures the property quickly sells.
But what exactly goes into pricing a property correctly?
Market forces
Like all things, the property market is always based on supply and demand, and contrary to what the media often reports, this can be highly localised.
To price your property correctly, you need to understand exactly what price similar properties in your local market are commanding.
This isn’t historic prices, by the way. It’s the price other similar properties are selling for right now in your area.
The pool of potential buyers
Different types of properties attract different potential buyers. And the more types of buyers your property appeals to, the more likely it is to achieve the price you want.
When pricing your property you need to understand its appeal, including the demographic it’s likely to suit and how active they are in the property market at this moment in time.
The unique features
While it’s important to understand how your property compares to others, you also need to appreciate the advantages it might offer, including unique features or little extras that equate to additional value.
For example, proximity to a popular café precinct or schools might see your property priced a little higher than others in the area.
Or, an additional feature like a private outdoor entertaining area might also make it more sought after.
You need an expert
While all the above are elements that go into pricing your property correctly, it takes a true professional who knows the market intimately to offer the best advice on what price point your home should command.
Armed with insight like recent local sales, current properties that are on the market and buyer demand, this trusted real estate agent is best positioned to price your property at a point that expediates the sale while ensuring you get maximum return.
To find this expert, look for someone with a proven track record and experience in your local area. Ask them about recent sales and exactly why they would price your property where they propose.
Be realistic
Finally, it’s important to be realistic about your price expectation. While we would all hope our property receives a the highest price possible, it’s the market that ultimately dictates what your home is worth.
The most important thing you can do is have a trusted real estate expert by your side who knows the market, understands your property, is willing to do all they can for you but will also offer an honest insight about what the market’s doing right now.
Looking to buy or sell?
If you’re considering buying or selling a property, why not chat with one of our friendly Eview agents on 1300 438 439?
We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here.
