Are you wondering why your home is struggling to sell after months of being on the market, while the house down the road sold in a matter of days? Perhaps you need to look at your price…
While there can be various factors contributing to a properties lack of interest, too often, it can come down to unrealistic pricing.
Price to sell
While it’s understandable that sellers want to yield the highest price for their property, the main concern in the current market should be, in fact, selling the property… With plenty of homes out there for buyers to choose from, pricing too high will limit your chances of a quick sale. Gone are the days of fierce competition- buyers are currently in control and if they cant see value at your listed price, they will simply walk away.
Testing the waters
Sellers have been known to list at an inflated price as a means of ‘testing’ the market. However, we would always (and particularly in Perth’s current market) advise against this approach. The savvy buyer conducts their own market research before visiting home opens, arming themselves with a general understanding of property values in the area. If your 3×2 property is priced at $550,000 and a few doors down there is a similar property priced at $470,000, questions will be raised, naturally.
For this reason, we always recommend speaking to an experienced professional. Your real estate agent will know the market like the back of their hand and can typically price your home (within a range of course) from the second they walk through the door.
They will also conduct research on your behalf on similar homes in your area which are selling or have recently sold. Keep in mind, supply and demand in your area will also be a major factor, as well as the current state of the property market.
Avoid the highest price
Remaining realistic is the key…
If you are “shopping around” for you real estate agent and seeking multiple property appraisals, it’s important not to disclose how much a previous agent appraised at to ensure a completely unbiased approach by each individual agent.
The highest appraised price should not necessarily be your deciding factor. Rather, your decision should be based on the agent’s familiarity with your local area, their real estate knowledge, marketing approach and sales history.
The danger associated with expired listings
If you choose an agent based on their high valuation, you run the risk of advertising an overpriced property which will typically sit on the market for weeks, even months.
Lack of interest will eventually result in a necessary price reduction which can sometimes be off putting to buyers who have been watching your property closely- the key is to price correctly from the start.
If you’re thinking of selling, conduct your own market research first, consider where your property sits realistically and seek help from a professional real estate agent!
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