There has been plenty of publicity in recent months about the changes in the Victorian property market, and what that has meant to property values. What many people don’t realise, however, is that one of the factors that has impacted on the Melbourne auction clearance rate is the number of vendors who have started their campaign with the wrong pricing, resulting in more properties being passed in than there should be. The simple fact is that one of the most important ingredients in a successful sale in today’s market is getting your property pricing right from Day One.
Property pricing will affect your inquiries
Anyone selling a property is obviously going to be keen to avoid selling for too little. Unfortunately, some vendors make the mistake of setting their property pricing higher than they actually expect to get, assuming that they will “negotiate” down from there. But what often happens is that those buyers who inspect the property quickly realise the home is overpriced and doesn’t offer the same benefits of other homes in the same quoted price range. What’s more, many other buyers will realise by viewing the property online, meaning they won’t even bother to inspect it. 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 just too unrealistic.
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 they are aware of how long it has been on the market.
Don’t get your property pricing too low either
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.
Even if the first buyer through your door ends up being the person that pays the highest price, allowing some additional time for other buyers to inspect your property will create extra competition. This will ensure that your first buyer doesn’t feel as though they can negotiate from a position of strength.
Correct property pricing requires listening to the market
Keep in mind that neither an Agent, a Valuer nor a vendor knows exactly what a home will sell for. It is only once your home is on the market and you can gauge the level of buyer interest that you should make a final decision on the price.
Getting your property pricing right is just one of the topics we cover in our free booklet, “Fatal Real Estate Traps Exposed”, so why not download a copy 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 1300 400 400.