Setting a price for your property can be a touchy subject. Many factors come into play when it comes to pricing property. Location, the market, recent sales, and configuration (bed, bath, car) are just a few of the things that come into play when your agent initially assesses your property.
We have talked about the importance of hiring a professional real estate agent to represent you and your property (you can read that here), but this is the most vital step! Especially when it comes down to price.
Without local market knowledge, recent sales data, and access to a number of real estate portals and databases, you could potentially be underpricing or overpricing your home. As someone who has lived in the home, you may see your space as an absolute gold mine. Emotions can play a big part in the property price also.
Before listing, your agent will prepare an appraisal which will include a price guide. From there, you will decide on a price together. So let’s break down how we arrive at this inital appraisal price.
Firstly, we look into the area data. Most experienced real estate agents know certain suburbs like the back of their hands. When analysing the local suburb data we look at median sale prices, price adjustments, local minimum and maximum sale prices, days on the market, homes that were listed but did not sell, the best time to sell, and access to local amenities such as, schools, shopping centres and public transport.
As agents, we have access to various real estate data platforms. This allows us to do extensive research into recent property sales and analyse their sales statistics. From all this data, we pick standout sales of properties that have similar features and use them as comparables for your property.
We also dive into more street-specific data. What did the neighbours pay? which house holds the street record price? We will also look at block sizes, configuration, additional features, and ownership details (owner-occupiers vs renters).
We will also look at any standout features of the property such as:
- Pool or spa
- Water tanks
- Solar panels
- Large land size
- Agricultural infrastructure
- Butlers pantry
- Outdoor entertaining
All of these features add extra value to your home and property price. Some features are heavily sought after, especially in certain areas.
Once we have conducted our appraisal we will also discuss price with the you, the vendor. We will answer any of your questions, discuss our reasoning and ultimately ask you what price you’d like to achieve.
THE FINAL DECISION
This step comes a bit later, once the form 6 is ready to be signed. Essentially it will be a collection of all the data and discussions had before that point. In order to, successfully sell your property, you will want to ensure your price meets the market, yet isn’t too overpriced or too underpriced. Achieving a happy medium will be the perfect place to start.
Good luck on your property journey!
If you would like to discuss the price of your property or devise a tailored marketing plan that will sell your home, give us a call today on 3202 3040.
TAYLAH ANTONIOLLI – MARKETING & COMMUNICATIONS COORDINATOR
07 3202 3040
A go getter and doer, Taylah is a no excuses, get the job done kind of girl. With a strong work ethic and high attention to detail, Taylah is happy to help out wherever she can. Armed with a degree in business specialising in marketing and public relations Taylah brings fresh ideas and innovation to the iThink team.
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