Pricing your property correctly

It’s said there are five prices for every property: the price the seller wants, the listed price, what the council has valued the property at, the probable selling price, and what the buyer is prepared to offer.

Often one of the hardest decisions about selling is working out what the asking price should be, especially if you’ve been in a property for some time and have strong feelings for it. It doesn’t matter what you paid for it, what improvements you’ve made, what you owe on it or what the cost to rebuild it would be today.

It’s important to be objective – and since you’re not likely to be able to do that, you need to be able to rely on your agent.

We’ll use a Comparative Market Analysis, based on what similar properties in your area have sold for, to guide us in pricing your property objectively and correctly. After all, we want the same result you do: your property sold for the best possible price.

What are the things that influence the sale of your property? Its location, certainly. Also the type of accommodation it offers, its condition (and how willing you are to increase its saleability), the terms of the sale (for instance, is your sale part of a ‘chain’ of property transactions?), its price, perceived value for money and how negotiable you are. Even your motivation for selling has an influence on the sale (If you are up against a time limit because you’re taking up a new job, for example). And, of course, your choice of agent and whether you offer them a sole mandate.

POINTS TO PONDER WHEN PRICING YOUR PROPERTY

• The seller sets the price but the buyer determines the value.
• Buyers are usually better educated on market values than sellers.
• Price is the most important negotiating factor for a buyer.
• Price compensates for a property's shortcomings.
• Generally the higher the initial asking price, the lower the eventual selling price. If that sounds strange, consider this: buyers learn the market value by comparing your property to others they’ve seen. If they think your price is too high, they’re likely to simply dismiss it.
• A house that sells within the first four weeks on the market will normally fetch the highest sale price. The actual price a property sells for tends to drop over time as the property becomes overexposed.
• A correctly priced property will attract the highest number of potential buyers in the shortest time and ensure a quick, hassle-free sale. An overpriced property will probably only sell after a number of price reductions and a protracted time on the market.
• Most buyers will look at between 15 and 40 properties in their price range before deciding.
• Statistically the first three to four weeks on the market are the best time to market a property.
• Interest sells houses, not time.

WHEN YOUR PROPERTY IS PRICED CORRECTLY, WE CAN GUARANTEE…

• the best and most motivated buyers will see your property first
• a fast sale
• an enthusiastic agent
• a higher percentage of realistic offers
• you’ll achieve maximum price

Be wary of agents who first suggest a very high price and, after they have your listing, work the price down, and never choose an agent based on the price they give you.