Selling a house is like walking a tightrope – you need to strike the perfect balance between price and timing.
Price meaning the amount of money you list your home for, and timing meaning how long your property is on the market.
This is by far the greatest challenge for most property sellers which applies to both private sellers and real estate agents.
The price you list your home for is a great determinant of the time your property will take to sell in the market, and if you incorrectly price your home, it may languish on the market for a long period of time.
So how do you obtain this perfect balance? Well, you could team up with an experienced real estate agent who knows the area like the back of their hand (hint, hint), or you could read the following to ensure you avoid some of the biggest pricing mistakes known in the industry.
Mistake #1: Setting your price to cover what you owe
This mistake can be made when you have the desire to receive more money from the sale than you owe on the property. Let’s cut to the chase: the buyer is only going to pay for what your property is worth today. Your mortgage is unfortunately not their problem, so to price your home above what you owe is definitely a no-go.
Mistake #2: Setting your price by comparing other houses in the same street
Our homes are our pride and joy, our sanctuaries and often, our most valuable asset. Of course we feel our house should go for more in comparison to other houses on the same street, but that’s not what a property valuation will tell you. Every property has different attributes which determines its value, so to base your price solely on your street view of other houses would be a shallow mistake.
Mistake #3: Setting your price based on similar homes but in different locations
A number of factors such as nearby infrastructure, amenities and suburb reputation can impact the value of a house. So, to base your price on a house that sold for X amount of dollars in a different location is simply unjustified.
Mistake #4: Setting your price higher than it was valued the previous year
A lot can happen in one year. Odds are that certain economic factors will have changed the value of your property, for better or for worse, so it’s wise to get a new valuation before you decide on your price.
The overall theme here is pricing your property too high in relation to its actual worth – whether that’s through unrealistic assumptions or inaccurate valuations.
The best way to avoid all of these mistakes? Talk to us today on (08) 8932 8858.
We carry out extensive comparative market analysis to provide you with a more accurate picture of the price buyers will be willing to offer for your property.
What other mistakes can sellers make when pricing their property? Share your knowledge below with fellow owners to help them avoid a costly mistake.
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