What is your property worth?
The value of your property is determined by what a BUYER is willing to pay in TODAY'S MARKET based on COMPARING your property to others currently on the market for sale.
- What you paid for your property has no bearing on its value!
- The amount of cash you need from the sale of your property has no bearing on its value!
- What you want for your property has no bearing on its value!
- What another real estate agent says your property is worth has no bearing on its value!
- What an appraiser says your property is worth has no bearing on its value!
Buyers always determine the final sale price!
How YOU control the sale of your home
There are 5 reasons a property sells:
- The real estate agent you choose
- Location of your property
- Price of your property
- Condition of your property
- Marketing of your property
You have no control over the location of your home, but its location helps determine its value.
You control these. The right price can only be determined by a well-researched computerised marketing evaluation. As a home seller, you should get a market analysis comparing your home to similar properties that have recently sold and are currently on the market.
Your home's condition is vital to a sale. A clean, well-maintained property enjoys a competitive edge over all the others on the market. You'll sell faster and at a higher price if you "Stage manage" your property to enhance its appeal.
Marketing your property in a structured, planned and professional manner is the major differentiator between various Real Estate Agents. A clearly designed and professional marketing campaign and strategy that will reach the widest buyer audience is absolutely vital to the sale of your property. There is no one strategy that fits all properties and a tailored approach based on prevailing market conditions and the knowledge of "what works" is best recommended by our experienced staff. It is important that you understand the marketing plan being recommended, understand the costs and monitor its progress and develop a good relationship with your real estate agent.
5. Real Estate Agent
The real estate agent advises you on market conditions, pricing, "staging" recommendations, contracting, financing, appraising, marketing and closing the sale of your property. Just as you insist on an experienced well-prepared doctor to treat your family, you want a real estate agent with a proven track record who does all the homework representing you in the sale of your property.
A few words on pricing
Do NOT always list with the real estate agent who gives you the highest price.
Expect the agent to suggest a price range, but don't let that frame you in. Be aware that some devious agents may, at first, suggest a very handsome price. Then, after they have the listing and the house hasn't sold, they'll come back with a pitch to lower the price.
If you bought BHP stock five years ago and wanted to sell it today, would you call your stockbrokers and tell them that you insisted on selling at a 200% profit or would you ask them to tell you what the market price is? This is the same principle with the Raine & Horne Queensland team of specialists and their market analysis on your home.
A sound and realistic strategy in setting your price can ensure you will be more likely to obtain your asking price ( or very close to it ) and you'll get it sooner. Through local knowledge we can help you establish a realistic price for your property, but do avoid the temptation to be influenced by the experiences other people have had in the sale of their property. No two properties, street or buyer/seller relationships are ever the same. The sale price of your property should be based on prices achieved recently on similar properties within your neighbourhood. The buyer or the market price will ultimately determine the true value of your property.
The buyer/seller psychology
In any buyer/seller relationship it's normal for the seller to ask himself or herself, "I wonder if we could have asked more?" On the other hand the buyer may question whether they could have paid less. The professional art of negotiating the best price is a skill that the Raine & Horne Queensland team has mastered. One way of obtaining a speedy, successful sale is to start with a realistic price in the first place, and remember, like you, we have a keen interest in getting the best possible price for your house. Sound, up-to-the-minute market experience will help you achieve the right price to sell your home.
Common pricing objections
Statements frequently heard from sellers that have no relationship to the home's value.
- Another agent said it was worth more.
- Our home is nicer than those houses.
- People always offer less than the asking price.
- We can always come down on our price.
- We have to get that much out of our home.
- My neighbour was able to get his price.
- Let's try it at our price for a month or so.
- The buyers can always make an offer.
- We paid more than that for our home.
Other factors that have no bearing on value!
- Your original cost.
- The cost to re-build today.
- Your investment in improvements.
- Personal attachment.
- Certain types of improvements.
Obstacles to proper pricing
- Agents who will accept a listing at any price the seller puts on it.
- Neighbours who lead the seller to believe they got more for their home than they did.
- Inflationary times that cause prices to go up rapidly because of economic factors.
- Recessionary times that cause prices to go down because of adverse economic conditions.
- Fear of making a mistake in pricing, which could lead to losing a significant portion of their equity.
- Loss of perspective due to the seller being emotionally involved and not necessarily thinking objectively.
- Need for a certain amount of cash out of a home, which has nothing to do with value no matter how important the reasons.
Overpricing can be costly!
Real Estate Agents are working with buyers who have seen what is currently on the market and are waiting for something new to be listed. Therefore, most activity will take place in the first 30 days of listing. Your property will most likely receive its highest and best offers during this time.
After this initial period, the only people to look at your home will be new buyers in the market place and buyers brought through to compare to other properties. If your property is overpriced it makes other properties appear "bargains".
Further information on selling your property is available through the Office of Fair Trading at www.fairtrading.qld.gov.au.