How to Determine the Value of Your Home When Selling

How to Determine the Value of Your Home When Selling

When we're selling a property, the million dollar question is, 'What is it worth?'. The single most important factor to consider when selling a house is pricing the house correctly.

- Contrary to popular belief it’s not you or your agent that sets the value, it’s the market. So be objective. 

- It’s very easy for buyers to do their research these days. All the information is right there on the internet. So don’t expect them to pay for your over capitalised renovations or unrealistic expectations, because they won’t.

- There are 3 P’s to consider when selling your home Price, Presentation and Promotion. When the other 2 P’s are all aligned, without the right Price you are at risk of losing the peak interest of the initial campaign. The first three weeks of any sales campaign are vital. If you set your price too high you could lose potential buyers.

- There are a number of factors you can consider to help you choose the right price tag. Look at similar ‘sold’ or ‘for sale’ properties in your area – ones within about a kilometre of where you live. This will reflect a realistic value of your home.

- When looking at current for sale properties, be sure to look at the number of days on the market, this will assist in determining if the property is possibly overpriced.

- But beware! Make sure you are comparing like for like. Look at location first, then size of the property as well as the block and possibly the unimproved value, if it is a house, and lastly condition and features.

- If your neighbourhood has a 'right side of the tracks' and 'wrong side' only choose properties on the same side as you. 

- It’s your agent’s job to market your property and negotiate for you – but they can’t do that if the offers have dried up. An initial lower selling price could stimulate bidding or multiple offers which will possibly drive your final sale price up.

- Finally think about the consequences of rejecting an offer lower than you expected - it could be better to cut your losses and move on. 


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