Beware of Overpricing - What is Your Property Really Worth?
One of the most important decisions to be made by you when selling your home is setting the price.

When setting the price of a property for selling, most owners tend to price their property on how much money they need from the sale of their property, rather than how much the market will pay.  Many real estate tell owners what they want to hear, so they overprice the property to win the listing.

Beware of overpricing though, overpricing is the most common reason properties fail to sell.

Here’s why…

Usually the best time to sell a property is in the first few weeks of it going on the market. If a property is priced correctly, it normally sells within two to four weeks of it being on the market. After it has been on the market for more than a month, it begins to go stale and gets a ‘lemon’ tag. Potential buyers notice that it has been advertised regularly and that the sign has been out the front for a while. Buyers begin thinking that something must be wrong with the property or it is overpriced - which is usually the case.

Sellers fall into this trap every day of the week. They list their house at an arguably inflated price and when the property doesn’t sell it becomes a ‘lemon’.  Eventually the price is lowered by the seller to a reasonable figure to 'meet the market'. When this occurs, the selling process can now begin all over again. New buyers will be attracted by the lower price and the property eventually sells at often a lower price than the price the seller originally would have achieved, had he or she marketed the property at a lower more realistic market price.

Be wary of any agent who tells you he or she can achieve a high price without backing up the price of your property with facts.

At Raine and Horne Glenelg, we always conduct an objective market opinion by carrying out a thorough inspection of your property which will provide a true estimate of price. Our market opinion is always based on sales evidence gathered from;

1. Property comparisons based on data from the land title etc;
2. Recent sale prices of similar properties in your area;
3. Similar properties currently for sale in your area;
4. The timing of the market, remember there are slower times on the market ie Xmas School holidays in Glenelg which are not a good times to sell;
5. Different marketing strategies to stimulate competition between buyers;
6. Buyer demographics; first homeowners, families, singles, luxury homeowners;
7. Special features of the property which provides significant benefits to a specific group of buyers.

Once you have set the price of your property, the next decision you must make is which method of sale you should choose to sell your home. Sellers typically choose either auction or private treaty because… read more