How does your property compare?
During a period when there is an oversupply of properties on the market those properties which sell for the price owners are requesting are those properties which are unique and presented well. It is important to make sure your property is positioned so it stands out and is more attractive than other properties available for sale around you.
You should attend open home inspections in your neighbourhood investigating competing properties which are on the market around you. This will give you insight into two important things, the first is how your property is priced compared to similar properties and the second is how your property is presented in comparison to similar priced property.
It is important to make sure that if your property is one of the most expensive properties in the neighbourhood you can justify why it is worth more money. Your property could be worth more money because it:
• Is presented better than others
• Has extra features such as a bedroom or pool
• Is in a better location or has views
No matter what you do you can never alter or change the last point. You can change the second point but invariably it will be costly and is usually something you do when you decide not to move but renovate your property. The first point is something you can control and something which allows you to ask that little bit more for your property if it is presented professionally and most importantly is better than competing properties in your neighbourhood.
I won’t go into detail about how your property should be presented or the various aspects of your property you should address when preparing it for a sale. You can see this information in this article on Property Preparation which I wrote a few months ago, all the essentials regarding how you can prepare your property for sale are outlined.
Most of the points discussed in the article above can be performed yourself and are quite cost effective involving a small amount of effort. You can also gather ideas from properties you inspect and use the presentation techniques found in these properties for your property. Even if you can’t get a particular area of your property as good as a competing property, any improve you make will reduce the gap between the competing property and yours which is a step in the right direction towards selling your property.
A point to remember is. Putting emotions to the side, if you can realistically justify to yourself why your property is priced more than a competing property than you will have no problem convincing a property purchaser why they should purchase your property.
Comments
I think property owners are often too “attached” to their property and have trouble rationalising what the property is worth. They also think because they are no using an agent purchasers will flock and pay what ever price they are asking.
Properties for sale by private sellers are often over priced compared to other properties on the market listed by an agent. Private sellers should make sure they do their research………………….
Micky
11.06.08
1:35 pm
Micky I think you are a little critical towards private sellers and are making a generalisation. Yes, some private sellers may fail to do their research and get their property pricing muddled up but this is only the minority.
I have friends who have or are attempting to sell privately one is an accountants, while the other is a blue collar worker. Both of them spent time looking at similar properties in their neighbourhood and used the internet for research. I know when i was working out the price of my property i used http://www.australianpropertymonitors.com.au and http://www.realestate.com.au and http://www.domain.com.au. I just searched for property which was similar in my neighbourhood.
JaneH
14.06.08
5:50 pm
I didn’t mean to offend anyone JaneH just stating it as I see it. Some private sellers have no idea about how they should price their property. Saying that, you and your friends appear to know what you are doing.
Micky
17.06.08
4:31 pm
This is a good article by Bob especially considering the current climate. What he is trying to say is that it is important for property owners to perform thorough research. They aren’t entirely to blame for incorrectly pricing their property especially if they have had a real estate come in and provide them with a market appraisal or they received a report from a real estate data company.
Some real estate agents will provide property owners with a market appraisal which is a little more than what the property is worth in an attempt to secure the listing. If the property does not sell then the agent will encourage the property owners to reduce the price. Now, lets assume the private seller used the agents market appraisal to set the price of the property. The private seller would think their property is priced correctly, but in actual fact it is over priced.
The problem receiving a report from a real estate data company is that there is a time lag with the data. That data was collected in the past and neglects any recent changes in the property market. Those reports are also generic for suburbs and are based on average figures not actual individual results.
One thing to remember is to use a variety of methods to determine the sale price of your property.
Rodney Munch
20.06.08
4:59 pm
I never though of getting an agent to come through and give me a market appraisal for my property. That sounds like a terrific way to get a sense of how much a property is valued.
But do agents charge for providing a market appraisal?
JaneH
24.06.08
6:38 pm
Jane: Agents don’t charge to complete a market appraisal for a property. This is what is known as prospecting or new business and they are expected to forgo this time to try and get vendors to list with them.
Agents will usually perform a market appraisal and then follow up on that appraisal hoping you decide to list them. Most vendors will get at least three market appraisals from three different agents and then decide on what agent they would like to go with.
There is nothing to stop you getting three market appraisals and then deciding you do not want to use any of the agents. Do remember though, that the agent has your contact details and knows where you live so expect them to following up on the appraisal. If you are not interested in listing with them tell them that as soon as they do their first follow up.
Bob Sacamento
26.06.08
4:39 pm
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SIDNEY
11.09.10
9:24 pm