pric­ing it to sell

The Advertiser - Real Estate - - Open House -

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.

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