As we pointed out in our recent Market Update, the current market is one where setting realistic price objectives is particularly important.
The current market conditions mean that smart vendors are taking a more conservative approach, keeping a clear focus on pricing and presentation. Ignoring either of these key elements tends to result in reduced buyer interest and less competition between buyers, which inevitably impacts on the price achieved. The gap between those who are doing the right things, and those who just relying on market demand to overlook any shortcomings, is getting bigger.
It is becoming clear that one of the most important tasks for anyone selling their property in 2022 is to get your property pricing right from Day One. As a property seller, you are quite rightfully concerned about selling your home for too little. However, a bigger mistake is to set a price that is higher than you expect to get, assuming that you can “negotiate” down from there. Today’s buyers know instantly if a property is overpriced, and doesn’t offer the same benefits that other homes in the same quoted price range offer, and they move on.
Incorrect property pricing discourages the right buyers from even inspecting the property. Just imagine if your ideal buyers, the people who might fall madly in love with your property and who can afford it, don’t come to look because the asking price is not realistic.
The end result of a situation like this is that the property sits on the market for far too long while the price slowly but surely comes down, and the home ends up selling for less than it might have because the buyers are aware of how long it has been on the market.
Just as setting your price too high is a problem, setting it too low is a danger too, as you may end up underselling your most valuable asset. Our experience has shown that, on average, the best price is usually obtained somewhere after between 2 and 4 weeks on the market. It might end up being the first buyer through your door that pays the highest price, but it is important that you allow some time to attract other buyers to your property to create some competition.
As we point out in our booklet, neither the Agent, the Valuer nor the vendor know exactly what a home will sell for. It is not until your home is on the market and you have an opportunity to gauge the level of interest among the buyers that you should make a final decision on the price.
If you sell your home after one inspection, even if you’re thrilled with the price you achieve, you’ll still be wondering whether you might have achieved even more if you’d waited a bit more…And yes, you may well have.
The importance of pricing your property correctly is just one of the topics the team at Ian Reid can assist you with. If you’re keen to know more, why not get your free copy of “Fatal Real Estate Traps Exposed”, while you’re here? Alternatively, you can get a copy sent out to you in the mail at any time by giving our helpful Customer Service team a call on 9430 0000.