HOW TO PRICE YOUR HOME TO SELL
Getting real estate appraisals and working out how to price your home to sell can be confronting, but we can help demystify the process for you.
This advice is based on a decade of helping home sellers achieve better than expected house sale prices and mostly within short sale timeframes.
There are four key factors that help influence an optimum sale price:
1) Your choice of your real estate agent and their ability to accurately price your home in their real estate appraisal.
2) Using the most appropriate method of sale that would generate a high volume of qualified buyer interest in your property type, price and location at that time.
3) The extent to which you prepare your home to sell. For example, minor improvements, repairs, maintenance and home staging can make a significant different to the price a home can sell for.
4) Identifying any risks that could make selling your house challenging and managing them. There are six main reasons that prevent a house from selling at all and we can help you address these should your property fall into any of the categories.
These are all factored into what we do, to help you sell your home for the best sale price.
PROBLEMS FACED WHEN PRICING YOUR HOME TO SELL
INACCURATE MARKET APPRAISALS
Real estate agents over-estimating a sale price in a market appraisal is sometimes done to ‘buy’ your listing and is conduct frowned upon by the industry authority. Other times it may be reflective of the real estate agent’s competence or the data they are using to establish it. Vetted real estate agents proved competent appraise properties accurately.
INACCURATE PRICE MARKETING
Marketing and advertising a home with an incorrect sale price is one of the main reasons why a property doesn’t sell at all.
This can be because the owners’ price expectations are unrealistic, or a real estate agent has over-estimated the price of your 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 sits 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, price reductions are inevitable and stressful, so getting it right the first time around is imperative.
SIX RECOMMENDATIONS TO GET THE BEST SALE PRICE
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, rather than over-estimating and suffering continual price-reduced marketing which is all too common in our view.
Before you show your home to real estate agents, use the resources below to make the best impressions and help increase your sale price.
CHEAP WAYS TO INFLUENCE A HIGHER SALE PRICE
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 to you and at the time of interviewing real estate agents and they are obliged to explain each method to you.
You may decide, along with your real estate agent, to 'test the buyers' perceptions of price' they are prepared to pay by using tender or auction methods of sale but be mindful that 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 not considered the most reliable source of information by many unless it’s a particularly unique property in its area with minimal or no comparative data to use.
With so much money at stake, it pays to use real estate professionals competent at pricing your home accurately.
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 (and the stress)
Registered property valuers will use online data available to them, but they also do an on-site inspection which unlike an online algorithm can influence a better sale price.
For example, 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.
However, they are unlikely to be picked up by online algorithms which can vary significantly. Only a property valuer's measured accuracy can properly assess their value.
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.
5. PROFESSIONAL PROPERTY VALUATIONS - GREATER LEVERAGE FOR PRICE NEGOTIATION
A registered valuation will provide you and your real estate agent with more confidence and leverage when it comes to negotiating the price of your home. What can potentially be gained with an accurate and full valuation may equate to many tens of thousands of dollars, in some cases for higher priced homes it can be hundreds of thousands.
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 buyer interest has come and gone at the beginning of your campaign.
The first day your property goes live online 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 online, buyers are more savvy about house prices, 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, using a vetted real estate agent and plan to achieve more, rather than using a property agent who over-promises and under-delivers. If the agent's sale price recommendation sounds too good to be true, it probably is.
Covid-19 Alert about Valuations as at April 9, 2020
The NZ Property Institute states: Until Valuers are deemed to be an Essential Service by MBIE, NO PHYSICAL inspections of any type should be undertaken by Valuers. It does not matter if this is a full inspection or a kerb side.NZIV are continuing to communicate with MBIE about “Non-Essential” status.
What this means is that Valuers, like every other Government prescribed 'Non-Essential' service, are in lock-down and must stay at home.
6. HOME STAGING CAN INFLUENCE YOUR SALE PRICE A LOT
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 per cent onto an 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 for a real estate agent to negotiate upwards, rather than downwards. It can help to generate a better than expected sale price. Many client reviews confirm this.
Rule of thumb for pricing a house to sell
We are of the opinion that free real estate appraisals from vetted agents, registered valuations and preparing your house for sale are the three most reliable and least risky methods for achieving the very best sale price for your home. Chat to us first.