Pric­ing your home

Central and North Burnett Times - - DOMAIN -

It’s the con­ver­sa­tion that can strike fear into the heart of even the most ex­pe­ri­enced real es­tate agent. A per­son’s home is of­ten their ab­so­lute pride and joy. Of­ten it has been home to won­der­ful fam­ily mem­o­ries or the blood, sweat and tears that were poured into those stun­ning ren­o­va­tions. Then you throw the ever-dis­cern­ing buyer into the mix. They have hunted the open-home trail for months, re­searched their pre­ferred sub­urbs and com­pared homes upon homes. Ul­ti­mately, it is these peo­ple who will de­ter­mine what your home is re­ally worth.

So when it comes time for an agent to have the price-set­ting con­ver­sa­tion with a seller, the re­al­ity of the mar­ket con­di­tions can come as, well, a rude shock. It is of­ten the case that the seller is sport­ing a lovely pair of rose-coloured glasses. What is a cas­tle in their eyes could be for lack of a bet­ter term a shack in the eyes of the buyer.

When de­cid­ing how to price your prop­erty, there is of­ten a dis­par­ity be­tween what the seller ex­pects and what the mar­ket is of­fer­ing.

Here are a few key tips to help you through the price-set­ting process;

* Set­ting a re­al­is­tic price will en­sure you ob­tain your ask­ing price and also con­clude the sale promptly;

* Sell­ers who set a too high price on their homes can se­ri­ously dam­age their prospects for a quick sale;

* Facts and fig­ures show that an over­priced prop­erty dis­cour­ages se­ri­ous buy­ers. When it re­mains on the mar­ket too long it redi­rects in­ter­est to more re­al­is­ti­cally-priced prop­er­ties;

* Emo­tional at­tach­ment and pricey ren­o­va­tions of­ten drive sell­ers to push the price up and un­der­stand­ably so. Ho- wever, un­for­tu­nately the state of the prop­erty mar­ket won’t al­ways re­flect per­sonal cir­cum­stances; and

* Do your home­work! Be sure to re­search the prop­erty mar­ket in your area and seek the opin­ion of a pro­fes­sional from a REIQ ac­cred­ited agency;

Agood start is an ap­praisal an in­spec­tion to es­ti­mate the sale price of a prop­erty. An agent will ap­praise your prop­erty at no charge if you re­quest them to do so.

This is not a pluck a fig­ure from the air’ kind of ap­praisal. Un­der the Prop­erty Agents and Mo­tor Deal­ers Act, if you re­quest the agent to pro­vide a mar­ket ap­praisal on your home, the agent will pro­vide a com­par­a­tive mar­ket anal­y­sis (CMA) or writ­ten state­ment for your prop­erty.

The cri­te­rion for a CMA is com­par­ing three prop­er­ties of sim­i­lar stan­dard and style sold within a five-kilo­me­tre ra­dius in the last six months. If an agent is not able to pro­vide a CMA due to lack of com­pa­ra­ble sales within your area, they must sup­ply you with a writ­ten state­ment out­lin­ing how they ar­rived at the sug­gested mar­ket price of your home.

From the CMA or writ­ten state­ment, and tak­ing into ac­count the cur­rent prop­erty mar­ket, sell­ers will have formed a foun­da­tion from which to set a re­al­is­tic sell­ing price for the home.

In any mar­ket con­di­tions, es­tab­lish­ing a re­al­is­tic price when sell­ing your home is im­por­tant, how­ever, it is even more im­por­tant when there are more sell­ers than buy­ers in the mar­ket­place. Af­ter all, be­ing an ed­u­cated seller sans rose-coloured glasses can make the sell­ing process much more ef­fi­cient for all in­volved

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