The property market is typically in either one of two phases, a buyers’ market or a sellers’ market. According to real estate experts, we are currently in a buyer’s market which means that there’s an oversupply of houses for sale in contrast to the buyers looking. For this reason, it is important as a seller to correctly price your house to ensure interested buyers and a valuable sale in the end.
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Justmoney details how you, as a seller, can price your property correctly so that it stands out in a competitive market.
With all the information and advice out there on what to do when buying and selling property, it’s easy to be misled. But according to Dr Andrew Golding, chief executive of Pam Golding Property Group, the bottom line remains that sellers are after the best price, while buyers – especially now – are seeking good value.
So, how do you correctly price your home?
Golding adds that it’s vital that your home is realistically priced when it initially gets listed in order to compete and stand out.
“If your home is incorrectly priced it’s likely that it will not sell or certainly not quickly and then probably with erosion of value,” Golding says.
In addition, banks are increasingly offering competitive interest rates on home loans which means buyers have more bargaining power.
The right price
He adds that if a home is priced above the current realistic market value then chances are it may remain on the market for longer.
“The longer a property stays on the market incorrectly priced, the lower the value to the prospective buyers as they may assume it’s overpriced or not a good buy,” Golding explains.
Golding says that this debunks the myth that if sellers put a house on the market higher than a realistic asking price they will get more out of the deal.
This is because buyers are now more informed than they were a decade ago and are aware that they currently have a wide variety to choose from.
“Sellers who can afford to wait for the market to shift, should hold on selling. Research has shown that the higher a property is priced above its ‘selling zone’ the longer the time it typically takes to sell,” he says.
This reduction would also go a long way in ensuring the market remains balanced.
If you find yourself ill equipped to correctly navigate the property market and set a solid asking price, Golding suggests consulting an experienced and trusted real estate agency. This is also advised when you urgently need to sell.
This would typically result in a valuation of your home, which would include factors such as the recent selling price of others properties in the area, and the amenities in the area
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