HOW TO PRICE YOUR HOME TO SELL
Working out what sale price to sell your home for can be difficult, so we have centralised here, how you can be more accurate and influence the best sale price possible.
Establishing an inaccurate house price is one of the main reasons why a property doesn’t sell.
This can be because:
A) The owners’ price expectations are unrealistic, or
B) A real estate appraiser has over-estimated a sale price or price range.
Real estate agents over-estimating a sale price in an appraisal is sometimes done to ‘buy’ your listing. Other times it may be reflective of the appraiser's competence or the data they are using to establish it.
Sometimes home sellers have a sale price in mind that is just not possible to reach, even by the most competent real estate agents. This is one of the leading reasons why a house sits unsold for months on end, so it is always best to establish the price as accurately as possible and aim for more, rather than over-estimating and continual price-reduced marketing which is all too common in our view.
Before you show your home to real estate appraisers, use the resources below to make the best impressions and help increase your sale price
- CHEAP WAYS TO ADD VALUE TO YOUR SALE PRICE
- INSTANT DOWNLOAD - SELL SMARTER KIT
- THE PROCESS OF SELLING YOUR HOUSE IN 5 EASY STEPS
METHODS OF SALE USED TO HELP ESTABLISH A SALE PRICE
You may decide, along with your real estate agent, to 'test the buyers' perception of value' with tenders or auction methods of sale, but real estate websites still require a sale price range to be entered, so when buyers are searching for homes for sale, your property pops up in the right search queries.
PROFESSIONAL VALUATIONS PROVIDE GREATER CERTAINTY
There are many variables when establishing a home's value and getting a professional valuation can:
- Highlight what areas and improvements could help to increase value
- Provide greater confidence and negotiation leverage
- Put you and your agent on the same page from the outset
Although registered property valuers will use online data available to them, they also do an on-site inspection that takes into account everything that an algorithm won't. For example, chattels, new kitchen, bathroom upgrades, carpet, a new roof, insulation installed, laundry upgrades, rewiring, new plumbing, landscaping or a new deck erected. These can add value but are unlikely picked up by on-line data.
By using a detailed, professionally prepared valuation report, based on both data and a thorough inspection of your property, you can better ensure you and your agent are on the same page from the outset.
A professional valuation will help to clarify your starting point price-wise and if you have already received an agent's appraisal, it will certainly bring them to account if their recommended sale price is too far from an actual valuation.
For greatest protection when choosing a property valuer, use a member of the NZ Property Institute. The Institute is New Zealand's leading professional body for standards, qualifications and ethics of property professionals.
VALUATIONS PROVIDE LEVERAGE FOR PRICE NEGOTIATION
A registered valuation will provide you and your agent with more confidence and leverage when it comes to final price negotiation. What can potentially be gained with an accurate and formal valuation may equate to many tens of thousands of dollars.
Getting a full valuation only after your property has sat unsold for months on end is the wrong way to go about it because much of the interest has come and gone at the beginning of your campaign. The first day your property goes live on line almost always attracts the highest number of viewers than any other day so use it to your advantage and take a look at the impact it has on the link below.
With easy access to home valuation information on line, buyers are more savvy about values. So if you start your property sale with an unrealistic sale price, you risk losing what might be your most viable buyers.
We believe it is best to start accurately, use a vetted agent and plan to achieve more rather than using an agent who over-promises and under-delivers. If the agent's sale price recommendation sounds too good to be true, it might be.
HOME STAGING CAN INCREASE YOUR SALE PRICE A LOT
Almost a decase of assisting people like you, it has been well proven that Home Staging is one of the cheapest, most effective ways of achieving an optimum sale price. Real estate agents often comment that they believe this can add 10-15% onto an expected sale price.
Home Staging using your existing furnishings is one of the most effective, no-cost ways to help elevate a buyer's perception of value. Our clients are welcome to email photos so we can advise how to elevate a buyer's perception of value of your home.
Home staging impacts in the following ways:
It makes a property stand out from competing listings in your price range and location
Wow factor attracts higher volumes of viewers to open homes
It optimises the perception of value to buyers
- It most often attracts multiple offers and most often sells in half the average sale time frame
Buyer competition is the ultimate situation for an agent to negotiate upwards, rather than downwards. It can help to generate a better than expected sale price. Many client reviews confirm this.
WHY RISK SALE PRICE ACCURACY WITH YOUR BIGGEST ASSET
While there are many on-line options that you can get ‘value estimates’ from, based on data-only information, they are only estimates and could be your downfall.
Some ‘ranges’ for one property can vary by hundreds of thousands of dollars. What a cost if it’s wrong. Selling a property priced too high for the market can be as damaging to you as setting the price too low.
Data sites may be right, but they may also be inaccurate. Each of these sites' price ranges or averages differ from each other, some substantially, because of the varying sources of data they each use.
Discussions with the NZ Property Institute confirms that these are not the most reliable source for putting a realistic sale figure on your biggest asset.
After much deliberation of all the house valuation options available, we are of the opinion that free real estate appraisals from vetted agents and registered valuations are the most reliable and least risky methods of establishing the right sale price for your home.
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