Setting a fair market price the key to sales success

THE COUNTRY’S largest real estate group, Harcourts, favours auctions over other selling methods because it lets the market determine the value of a property.

‘‘Marketing with a price limits what a keen buyer may pay,’’ the agency says in its latest Property Focus newsletter.

‘‘Once a listing price has been established for a property, a ceiling has been placed on what a buyer expects to pay for it.’’

Nonetheless, if you do list your home with a price, Harcourts says it’s ‘‘absolutely critical’’ to set a fair market price based on a real estate agent’s comparative market analysis.

‘‘This will help advise you of the estimated market value of your property by comparing your home with similar properties in your area that have sold recently.

‘‘Using these properties as a guide, you can objectively calculate an estimate market value.’’

Harcourts says it’s sensible to have a fair price in mind from the outset.

‘‘The right price will attract the right buyers for that particular property rather than buyers in a higher price bracket inspecting the property and expecting more based on its price.

‘‘An overpriced home makes the competition look good - it helps other houses to sell.’’

Harcourts says the longer a property is on the market, the less urgency there is among buyers.

‘‘Urgency creates more realistic offers from buyers and often a better price is achieved.

‘‘All listings are perishable and deteriorate with time on the market. Therefore, the longer an overpriced listing is on the market, the less perceived market value it will have.’’

Correctly pricing your home from the first day it’s listed is especially important in the digital age.

‘‘Website activity is at its highest when a property first enters the market,’’ Harcourts says.

‘‘Many buyers have an automatic alert in place to notify them of new listings.’’