The key elements to selling a house are:-
- Appearance
- Price
- Location
- Time
- Exposure
- Economy
The focus of this blog is on price and there are a number of considerations to take into account.
Firstly, do not rely on your own opinion of your home’s price. Invariably you as the vendor are probably biased in favour of its worth. Most people tend to overlook the issues and exaggerate the property strengths. It is worthwhile carrying out the necessary research or using an expert utilising more in-depth evaluation principles. It is imperative that if a valuer is not sourced, a few agents should be called upon for their opinion on a price range.
Residential properties can be valued in two ways. The first is the direct comparison approach where sales evidence being sufficiently similar to the subject property are compared and adjustments made. In other words, if two new houses in the same street were originally built with the same footprint by the same builder and differ slightly with one having a double garage and the other a single carport then the double garage must be worth more. The summation methodology is a more objective approach. Here the cost of the improvements or cost to build the house is added to the land value and depreciated either by age or by the condition of the improvement.
Secondly, you must remember you only have one real chance to launch your property to the market, so pricing strategy is important. Do not take the assessed price and then add to it. Overpricing will deter sincere buyers. It should be set at a realistic, yet attractive level that reflects value when compared with other similar houses being sold or which were recently sold. Remember, it takes a willing seller and a willing buyer to agree on a price for home.
Thirdly, while all buyers are more educated these days and do their own research, all buyers have different reasons for buying a property, be it that they may be an investor, or a prospective owner occupier who wants to be near schooling and transport but is not fussy in terms of features. Alternatively, you may have another prospective owner occupier who is manic about the features that the house offers. Consequently, buyers look at properties within a narrow price range. Therefore, if a home is priced competitively and perceived by buyers as satisfying most of their needs the owner will receive strong interest.
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