How to price your home to sell

Wangaratta Chronicle - North East Property Guide - - NEWS -

Long be­fore you start­ing think­ing about pre­sent­ing your home for sale, or even find­ing the right agent, you need to have a solid idea of how you are go­ing to price your home to sell.

Why do you need an ac­cu­rate idea of the value of your home?

Thanks to the avail­abil­ity of prop­erty and mar­ket data, such as Price Es­ti­mate tools and de­mo­graphic data, buy­ers have never been more knowl­edge­able of the mar­ket as well as shrewd in how they find prop­er­ties. Pric­ing your home to sell in an ac­cu­rate way is one of the most pow­er­ful mar­ket­ing tools you have avail­able to you, as an ac­cu­rate price range hones in on the very peo­ple you want to at­tract. As af­ford­abil­ity con­tin­ues to re­main a chal­lenge for many buy­ers, there is a large in­cen­tive for buy­ers to waste as lit­tle time (and money) as pos­si­ble when find­ing prop­er­ties for sale.

Your first steps in pric­ing your home to sell

First off, do all the things you can af­ford­ably do to max­imise your prop­erty value in re­la­tion to the ex­pense of such re­pairs. For in­stance, cos­metic re­pairs and ren­o­va­tions, new light­ing so­lu­tions and land­scap­ing.

As you do these var­i­ous re­pairs and ren­o­va­tions, you want to en­gage a range of real es­tate agents to pro­vide you with free prop­erty ap­praisals. Do this ev­ery six months or so long be­fore you sell, while make sure you cast that net nice and wide. Don’t just re­strict your­self to the one or two lo­cal agents in your neigh­bor­hood, but en­gage sur­round­ing agents. They will jump at the chance to ex­tend their prospec­tive pool of clients beyond their im­me­di­ate mar­ket, and they may even win your busi­ness in the end. Hav­ing a sig­nif­i­cantly wide range of ap­praisals will quickly high­light a fairly ac­cu­rate es­ti­mate of your prop­erty’s value, while also help­ing you to find that one agent who will rep­re­sent you on the mar­ket. You can also com­pare each one of these ap­praisals with the price es­ti­mates you find on­line, which are based on your lo­cal mar­ket and com­pa­ra­ble prop­er­ties nearby.

Prop­erty ap­praisal vs prop­erty val­uers

At some point as you con­tinue to have prop­erty ap­praisals done by agents, and fol­low­ing the com­ple­tion of any up­grades and re­pairs to your prop­erty, it can be ben­e­fi­cial to have your prop­erty val­ued. This is a more thor­ough anal­y­sis of your prop­erty’s fea­tures as well as the mar­ket, and is of­ten used in sce­nar­ios such as re­fi­nanc­ing or set­tling le­gal dis­putes. Val­uers are re­quired to go through train­ing to ap­ply a range of cri­te­ria to the pric­ing of your home. This step may also help you find the best agent for your home, as with a sound knowl­edge of the value of your home you will weed out those po­ten­tial suit­ors who don’t have your best in­ter­ests at heart.

There are a few things you can do to pre­pare for a val­u­a­tion. It is im­por­tant to list all of the un­seen ben­e­fits/ad­van­tages to your home. The most ob­vi­ous un­seen ben­e­fits are those that are built into the con­struc­tion the build­ing (re­cy­cled in­su­la­tion, un­der­floor heat­ing, sus­tain­able build­ing ma­te­ri­als, dou­ble-glazed win­dows, air cir­cu­la­tion de­sign) and en­ergy-sav­ing ad­di­tions (grey wa­ter sys­tems, wa­ter-sav­ing na­tive gar­dens, so­lar pan­els).

Pro­vide your value these ad­van­tages in the form of a printed doc­u­ment, and have them check each one for its con­di­tion etc, even list­ing the date they were in­stalled to high­light the ex­tent of the prod­uct’s life­time (i.e. so­lar pan­els).

Work­ing with your agent to price your home to sell

Once you have gone through the process of hav­ing reg­u­lar prop­erty ap­praisals done and even hav­ing your home val­ued pro­fes­sion­ally, you will prob­a­bly have a good idea of who you want to work with when sell­ing your home.

In Vic­to­ria, un­der­quot­ing laws in­tro­duced in 2017 en­sure that the ad­ver­tised price of a home sits within a 10 per cent range, and is stated clearly in advertising with­out such vague in­di­ca­tions as ‘any­thing above…’ or sym­bols such as ‘$600,000 +’. Leg­is­la­tion is sure to fol­low across Aus­tralia, yet it is still com­mon to see such sym­bols and a lack of ac­cu­rate price ranges in some mar­kets. No mat­ter what state you sell your home in, it is to your ben­e­fit as a ven­dor to list your prop­erty ac­cu­rately. Do­ing so helps to im­prove the sense of trans­parency within the real es­tate in­dus­try, im­prov­ing con­sumer con­fi­dence in the buy­ing and sell­ing process, while in­stantly fil­ter­ing out buy­ers whose bud­gets do not suit your ex­pec­ta­tions.

If states where leg­is­la­tion does not yet ex­ist that re­stricts the use of vague sym­bols and lan­guage, find an agent that demon­strates an un­der­stand­ing of how an ac­cu­rate and pub­lic list­ing price can have such a pow­er­ful role in find­ing buy­ers for your home, and sit down with them to an­a­lyse the lo­cal mar­ket be­fore set­tling on a price range of 10 per cent ei­ther way.

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