Pric­ing your home

Whitsunday Times - - DOMAIN -

ONE of the most im­por­tant things you will need to do when sell­ing your home is to es­tab­lish a price.

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

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

The Real Es­tate In­sti­tute of Queens­land (REIQ) recog­nises there are a num­ber of rea­sons why sell­ers tend to price their homes far above the real mar­ket price. Many have an emo­tional at­tach­ment to the home, or ex­pen­sive im­prove­ments may have been made and the seller wants to re­coup the in­vest­ment.

“Re­search shows that an over­priced prop­erty dis­cour­ages se­ri­ous buy­ers, it re­mains on the mar­ket too long, and redi­rects in­ter­est to more re­al­is­ti­cally priced properties,” REIQ man­ag­ing di­rec­tor Dan Mol­loy said.

“When try­ing to set a re­al­is­tic price, sell­ers should do some home­work on the prop­erty mar­ket in their area and seek the opin­ion of a pro­fes­sional.

“One of the best ways to get a grasp on the cur­rent mar­ket is to en­list the help of a REIQ ac­cred­ited agency.

“Ac­cred­ited agen­cies have ac­cess to a wealth of re­search and in­dus­try in­for­ma­tion that the agent is able to pass on to their clients when they are pric­ing a home.”

A good base to start from 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.

Un­der the Prop­erty Agents and Mo­tor Deal­ers Act 2000 (PAMD Act), if you re­quest the agent to pro­vide a mar­ket ap­praisal on your home, the agent will pro­vide a com­par­a­tive mar­ket anal­y­sis (CMA) for your prop­erty.

Agents and auc­tion­eers are re­quired to sub­stan­ti­ate their ad­vice by pro­vid­ing the seller with ei­ther a CMA or a writ­ten state­ment. 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.

Un­der the PAMD Act, auc­tion­eers and agents are also pro­hib­ited from dis­clos­ing whether the seller has set a re­serve price, and if a re­serve has been set, they are pro­hib­ited from dis­clos­ing the price.

Agents and auc­tion­eers are also pro­hib­ited from dis­clos­ing to po­ten­tial buy­ers/ bid­ders an amount that they be­lieve may re­sult in a suc­cess­ful sale or bid for the prop­erty.

They are able to pro­vide to a buyer/ bid­der a copy of the CMA or writ­ten state­ment that was pro­vided to the seller, only with the sell­ers writ­ten in­struc­tions.

“From the in­for­ma­tion col­lated with the com­par­a­tive mar­ket anal­y­sis or writ­ten state­ment, and tak­ing into ac­count the cur­rent prop­erty mar­ket, sell­ers will have formed a foun­da­tion from which to set the sell­ing price of their home. At a com­pet­i­tive price in a nor­mal mar­ket your home could be sold within days,” Mr Mol­loy said.

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