Pricing your home
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.