PROPERTY PRICING ISSUES
MAKING THE RIGHT CHOICE
Pricing your home correctly is essential in achieving your real goal – Selling at the highest possible price, in the shortest possible time, with the least amount of complications. Do not be fooled by agents who will tell you what you want to hear just to get the mandate!
At Property Network we use thorough research combined with in depth area knowledge to provide you with an accurate valuation. A proper CMA (Comparative Market Analysis) provides you the seller with the reassurance that your home will be marketed at the proper value. No thumb suck numbers with your largest asset – and we are willing to give you this information as well, as part of this information pack when we do your valuation.
 | A history of Homes Sold in Your Area Providing a Clear Idea of What Buyers are Willing to Pay |  | Together this information provides us with a true and accurate indication of current market pricing at which to begin our marketing |
 | Similar homes now for sale in your area What is your competition. What buyers would pay compared to others | ||
 | Expired or withdrawn listings in your area This indicates what buyers are not prepared to pay at the moment |
REMEMBER – THE MARKET PRICE AT WHICH THE HOME WILL SELL......
IT IS NOT what the agent feels like
IT IS NOT what the Seller thinks they should get
IT IS NOT what the Insurance has estimated at Replacement Value
IT IS NOT your original cost plus what the seller has spent on the home
IT IS ONLY the market price that is relevant to pricing your property accurately!
BEWARE OF OVERPRICING
| CORRECT PRICING | OVERPRICING | |
|
· Creates an immediate impression of good value
· Compensates for the property’s faults · Stimulates buyer interest · Increases advertising response · Keeps seller at an advantage negotiating · Achieves maximum exposure at optimum time |
· Buyers first impression is overpricing
· Forces buyers to look at cost of repairs · Loses many potential or interested buyers · Reduces advertising response · Puts seller on back foot negotiating · Extends marketing time | |
Resulting In :
Marketing period minimised Maximum price achieved Haggling and disappointment reduced Least disruption with show houses and visits Your property is highly competitive as a choice |
Resulting In :
Buyers are reluctant to make offers Competing properties look more attractive Property becomes over-exposed Attracts lower offers than normal Seller loses first three critical marketing weeks |
Feel free to speak to your Property Network professional about these issues – but statistics do not lie. Overpriced properties end up getting LESS than market value simply because buyer interest has gone away and the only offers left are those looking for giveaway bargains. The genuine buyers have moved on and bought a property at market value elsewhere.
PROPERTY ACTIVITY
Property Network agents have excellent sales skills and are capable of reading buyers needs in order to close a sale. They are also top notch negotiators able to ensure you get the best price possible.
We are still in a buyer’s market however and you have a lot of competing homes out there. To exercise our skills and accomplish your goals means we have to get as many potential buyers to view it as possible.
This means we have to take careful consideration of the negative effects of overpricing and the known trends on property viewing activity, once it comes on the market. We must have the property marketed at the best possible price during the period of highest activity – the first three weeks.
Pricing your property as close as possible to the centre of the triangle will ensure maximum exposure!
Can you afford to wait until activity and enquiries have died away before you price correctly?
BUYER AWARENESS
Buyers are more educated and informed than before. They do thorough research and statistics currently show that they will look at, on average 15 properties before making a decision!
They have, other than printed media, access to the internet and do comparative pricing even before they start shopping. This means that with once glance, they will dismiss your property from their list if it is overpriced. Or even worse, wait until you are desperate and then swoop in for a bargain.
Pricing your property correctly means that we as agents, can stand firm in front of buyers, with facts to back us up – that your home is priced right and represents value for money!
Also remember that buyers are fully aware that our economy and the property market are still trying to emerge from recessionary times and they are operating in what is still a buyer’s market. This motivates them to negotiate and if you are starting from a weak point of being overpriced you become forced to engage with the buyer having an advantage.
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