It’s time to make a change and, of course, the priority is selling your home for the best possible price. There are a number of factors that go into this decision, but accurate pricing is extremely important. So, we have put together a few tips to help you take an informed and comprehensive approach when pricing your home.
The best approaches start with a research phase. This will include your own personal research, as well as gathering information from local experts to flesh out the knowledge you’ve collected so far. Spend some time familiarising yourself with what’s around through online searches, browsing agency windows in your neighbourhood or even attending auctions as a spectator – make sure you keep your hands in your pockets there though!
Getting a few property appraisals from local real estate agents will also help you get informed. An agency appraisal gives you an estimate of what your house is likely to sell for and therefore helps you move on to the next steps, including upgrading the property, choosing the time to sell, or locking in pricing decisions. Now that you have some information under your belt, you need to make careful decisions about the most important aspect of selling your home – the price. There are a few things to consider:
1. How does your home compare to others recently sold?
Your reasons for selling may directly influence the pricing decisions you make. Desperation or anxiety can lead us to make bad decisions so to avoid a disaster, why not take a strategic approach? A real estate agent’s appraisal will come in handy here and could be your best starting point.
When the real estate agent comes back to you with their estimate, ask them questions about how they got to the figure they did. They should have taken into account a number of factors such as local recent comparable sales figures, the condition of your home compared to similar properties on the market, and any recent improvements or unique features your property has to offer.
Understanding their process will inform you more than you might think and can then help you decide your base price – the minimum amount you are willing to take for the property. This figure could be leveraged off a combination of the appraisal figure and the current budget you need to find, to cover the transition out of this property and into a new one. If your appraisal comes back higher than your base price, then you have some breathing space. Knowing your ‘break-even point’ means you can then set some goals for your dream price. Between your appraisal figure, your base price and your dream price, you have a solid set of price points to then decide on your selling price. However, never forget that the market will not simply pay you what you need to put your plans in place so proceed with caution.
2. Unlocking the Full Value of Your Home
The real estate agent’s appraisal is a valuable tool but can leave you crying on the sofa or popping bottles of champagne. But either way, remember, it’s just a starting point. Learning a few home truths after many years of sitting on a property can be empowering.
Agents follow a strict set of legislative and ethical guidelines, and should be able to clearly and frankly justify their estimate. In doing so, they can provide insights you were previously unaware of about your property and local area. This may inspire you to unlock the true value of your home by making small but significant changes, based on current market demand and desires. Here’s your chance to take things up a level, unlock the full value of your home, and boost the most desirable features to edge closer to your dream of selling your home for the best price.
3. Your Ranking in the Competition
If you live in suburban Australia, it’s more than likely there’s another house just like yours for sale, right around the corner. Knowing your competition helps you understand where you rank and what you need to do to be the best option for potential buyers.
If you have time, start checking out the local properties for sale over a 30 to 60-day period. Use the search terms your property would match and make notes about what other homes have to offer, or what you see missing from most of the results. Small things like adding a guest toilet or converting a spare bedroom to a home office or leisure space, can give you a unique edge. They can also add considerable perceived value to your property when compared to all the others just like you. Of course this extra value also gives your numbers a boost when it comes down to the final decision about pricing your home!
4. What is the Housing Market Doing?
All that gorgeous landscaping and glamorous styling will go to complete waste if the market is in a slump. Get a good understanding of the current market, locally and nationally, before you jump in and price yourself out of it. You may find that no matter how you crunch the numbers, the current market is not going to meet your financial needs, so you should wait. If you have an urgent need to sell, then knowing the big picture may help you set a more realistic selling price. An overpriced property in a buyers’ market will not sell quickly enough, and the longer it’s listed, the faster it loses value as active buyers see it again and again and start to ask what’s wrong with it. An under-priced property may be snapped up faster than you anticipated and you are left under budget and unprepared for your next move.
5. Agents’ Commissions
You would hope that all agents do their best to sell your property, but a little extra love never hurts. Nobody likes fees and commissions, but if you spend some time understanding them and look at them as an investment rather than a cost, you may end up with a better return than you expected. The real estate agent being paid a reasonable fee will be more committed to selling your home for the best price and you will feel more empowered to engage with them about the expected results. Look carefully at the numbers and adjust your selling price to accommodate for a healthy set of incentives that works for everyone.
So… now that you’re educated and inspired, why not request a free market appraisal from First National Real Estate Burnie? Appraisals are free, without obligation and a great way for you to launch into the process of selling your home.