Prop­erty not sell­ing? Avoid th­ese pric­ing mis­takes to en­sure it gets sold quickly

Weekend Argus (Saturday Edition) - - PROPERTY -

WITH THE prop­erty mar­ket beginning to show signs of a re­cov­ery, it is more im­por­tant than ever to en­sure your home is cor­rectly priced.

Jenny Rushin, prop­erty fi­nance man­ager at ooba, says a prop­erty listed at the right price will give sell­ers the great­est chance of at­tract­ing buy­ers.

“A lot of prop­er­ties have been for sale for months and may con­tinue to sit de­spite the pre­dicted re­cov­ery as they are over­priced,” she says.

Here are ooba’s com­mon val­u­a­tion er­rors to avoid:

Skip­ping the re­search. Don’t put your prop­erty on for what you think it is worth or even what prices are listed for in your area. In­stead, en­sure you have an ex­pert agent look at the re­cent sales of homes in your area that are sim­i­lar to yours. A com­par­a­tive mar­ket anal­y­sis will give a much more re­al­is­tic idea of what your home is worth.

An in­flated price will scare away po­ten­tial buy­ers.

Get­ting emo­tional. It’s nat­u­ral to be­come emo­tion­ally at­tached to your home, but buy­ers are looking for sound in­vest­ments and are likely to view your home dis­pas­sion­ately; they sim­ply won’t pay ex­tra for your sen­ti­men­tal at­tach­ment. It’s best to stay ob­jec­tive by looking at the statis­tics of ac­tual com­pa­ra­ble sales and re­mind your­self that you are in­volved in a busi­ness deal. Re­mem- ber: don’t take low of­fers per­son­ally. It could be the start of a ne­go­ti­a­tion that ends in a sale.

Go­ing with the first agent may not be the right thing to do. Make sure you shop around for the best deal; it is al­ways worth get­ting a val­u­a­tion from a few dif­fer­ent agents in your area and ask­ing them to back up their val­u­a­tions with com­pa­ra­ble sales data. You can also con­sult pro­fes­sional prop­erty val­uers.

Pric­ing too high from the start is a mis­take. Agents will tell you that the first cou­ple of weeks on the mar­ket are the most cru­cial.

If your home en­ters the mar­ket over­priced, many buy­ers will over­look it from the start be­cause it will be out of their range and knowl­edge­able buy­ers, who have been looking around for a while, have a good sense of the suit­able pric­ing.

By the time you re­duce the price to fair mar­ket value, many po­ten­tial buy­ers will have al­ready found some­thing else.

Other buy­ers may ini­tially be in­ter­ested in your new low price, but they’ll also see that your home has been on the mar­ket for some time. And that could lead them to be­lieve there is some­thing wrong with the prop­erty or think that you must be des­per­ate and will­ing to ac­cept a very low of­fer. Con­versely, be­ware of un­der pric­ing which will have a detri­men­tal ef­fect on the home owner’s per­sonal wealth.

Chas­ing the mar­ket is an­other prob­lem. If you list your home too high to be­gin with, you may find your­self mak­ing in­cre­men­tal price drops but never quite catch­ing up with the mar­ket. And when a home has had sev­eral price re­duc­tions, buy­ers may view it as stale.

It’s best to work with your agent to re-eval­u­ate mar­ket con­di­tions and de­ter­mine the fair mar­ket value of your home be­fore you put up the For Sale boards.

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