pricing it to sell
DETERMINING the advertising price for your property is a very important decision and will be made in consultation with your REISA-member r eal es t a t e practitioner.
Setting the price for a property must follow strict legislative guidelines that reflect the interests of both the vendor and potential purchasers.
When filling out a sales agency agreement with your agent, you need to state the minimum price you are willing to consider in an unconditional offer.
The agent must state a genuine estimated selling price based on research and knowledge of the local area.
While neither of these prices needs to be disclosed to potential buyers, they do form the basis of your advertising price.
Whichever is the higher of the vendor’s and agent’s estimate becomes the ‘‘prescribed minimum advertising price’’.
This process is in place to ensure the unethical practice of underquoting is eradicated. Once this is established, then you can choose to advertise your property in three ways: Fixed price, price range (with the range not exceeding 10 per cent) or no price indicator.
No written words are allowed to be used in advertising material. So things such as ‘‘offers above’’ or ‘‘from’’ are a thing of the past.
These guidelines may seem rigid but they are in place to ensure that there is more transparency in the advertising process. For properties with a high level of interest, the final sale price may exceed the original advertised price, which is simply market forces at work.