RULE OF THUMB FOR PRICING A HOUSE TO SELL
Combining information from property valuations and real estate appraisals after you have prepared both the interior and exterior is the most reliable and least risky way to establish the right price for selling your home. Most people start with a free real estate appraisal and if in doubt, obtain a registered valuation.
There are four key factors that help will help ensure your home is priced accurately from the outset:
1) Your choice of real estate agent and their ability to accurately price your home in their real estate appraisal.
2) Using the most appropriate method of sale to generate a high volume of qualified buyer interest in your price range.
3) The extent to which you prepare your home to sell. For example, minor improvements, repairs, maintenance and home staging can make a significant difference to the price a home can sell for.
4) Identifying any risks that could make selling your house challenging and managing them. For example, unconsented work.
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PROBLEMS TO AVOID WHEN PRICING YOUR HOME
Real estate agents can sometimes over-estimate the price of your home to entice you to list with them - this is conduct frowned upon by the Real Estate Authority.
However, in contrast to this, a solid and fact-based property appraisal can also be reflective of a real estate agent’s competence and the strength of the data they are using.
For greater assurance about the sale price accuracy, you can use a real estate agent who has been vetted by us for competency.
Learn more about property appraisals
GOING TO MARKET AT THE WRONG PRICE
Marketing and advertising the sale of a home with an incorrect sale price range is one of the leading reasons why a property doesn’t sell at all.
This can be because the owner's price expectations are unrealistic, or the real estate agent has inflated the price of the home in the market appraisal.
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 can sit unsold for months on end, or years in some cases.
If you rely on a market appraisal conducted by a real estate agent which is inaccurate from the outset, price reductions are inevitable and stressful, so getting it right the first time around is imperative.
Request a shortlist of vetted agents that you can compare for an accurate appraisal
HOW TO PRICE YOUR HOUSE TO SELL FAST
1. PRICE YOUR HOME ACCURATELY BUT AIM FOR MORE
It is always best to establish the sale price of your home as accurately as possible and aim for more with a proven marketing strategy.
2. USE A VETTED REAL ESTATE AGENT PROVEN TO BE COMPETENT
3. CHOOSE THE BEST METHOD OF SALE
There are numerous methods of sale available and real estate agents are obliged to explain each method to you.
You may decide along with your real estate agent to test buyer perceptions of the price they are prepared to pay by using tender or auction methods of sale - although real estate websites still require a sale price range to be entered.
When buyers are searching online for properties for sale, search queries often include a price range so entering the correct information ensures yours pops up in the right searches.
Getting feedback from viewers at open homes is also used by real estate agents to help them establish a sale price but this is not considered the most reliable source of information unless it’s a particularly unique property with minimal or no comparative local data to use.
4. PROFESSIONAL PROPERTY VALUATIONS AID PRICE CERTAINTY
There are many variables when pricing your home to sell and getting a professional valuation can:
- Highlight what areas and improvements could help to increase the value
- Provide greater confidence and negotiation leverage at the point of sale
- Prevent continual price reductions
Registered property valuers will use online data available to them, but they also do an on-site inspection which will result in a more accurate sale price.
Chattels, new kitchen, bathroom upgrades, new flooring or roof, insulation installed, laundry upgrades, rewiring, new plumbing, landscaping or a new deck can all help increase the price of your home.
If you have already received a real estate agent's appraisal, a registered valuation will reveal any weaknesses in their suggested figure.
An accurate and full valuation can equate to many tens of thousands of dollars extra in the final sale price.
The first day your property goes live online almost always attracts the highest number of viewers of any other day so it’s important you have the right valuation from the start.
We believe it is best to use a real estate agent who has proven valuation expertise to avoid attracting one who over-promises and under-delivers. If a property agent's sale price recommendation sounds too good to be true, it probably is.
5. HOME STAGING CAN MARKEDLY INFLUENCE YOUR SALE PRICE
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 the expected sale price of a house.
Home Staging using your existing furnishings or hiring furniture for an empty home is one of the most effective, low-cost ways to help elevate a buyer's perception of value.
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 or private viewings
- It optimises the perception of value to buyers
- It often attracts multiple offers and helps to sell in half the average sale time frame for the area
Buyer competition is the ultimate situation because it enables a real estate agent to negotiate upwards, rather than downwards. It can help to generate a better than expected sale price.
If you need advice about selling your home, get in touch now.
Page updated November, 2022 | By Trish Willis Member of the Property Institute of NZ (IPAC)
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