Pricing your home for sale
Pricing your home for sale is tricky and requires finding the right balance. A low price point will encourage a quick sale but you could walk away with a sum below true market value. Listing higher than the market could turn buyers away and may result in the home lingering on the shelf with little or no buyer interest. Finding the right listing price requires just the right balance.
A stigma is often associated with homes that have been on the market for a while – say longer than three months. Buyers start to question why the home hasn’t sold, actively seeking out possible faults. Vendors who find themselves in this situation can often be led down the path of discounting in order to secure a sale.
Vendor discounting is the percentage between the original asking price and the end sale price of homes sold by private treaty. Listing higher than what the market dictates may result in the home lingering on the property shelf. This can become prevalent when market conditions begin to soften. Vendors who misread a market change or perhaps choose to ignore it, and list their home expecting boom-time pricing, may only to have to adjust their price guide later.
Finding a good listing range is even more crucial when the market is seeing a change in the trend. Ideally, an agent wants to find the price point. They need to get lots of potential buyers through the marketing funnel and hopefully have two or more buyers competing against each other. Sellers who enter the market believing it is still boom times can be caught up in excessive vendor expectation. That means an agent who lists a property at too high a price will not have any potential buyers to work with.
It is crucial to understand the factors that influence the price point of your home in order to set the right asking price from the start. Due diligence should be conducted to help understand the market conditions before setting an asking price. It is good to seek advice from industry professionals. For buyers looking to secure a discount on a home they think is overpriced, it is worth trying an offer. A figure too low could put the seller off. Waiting for a price drop could equally mean missing out. These are difficult decisions and knowing what to do in each situation can only come with experience.
BPS offers a Vendor’s Advocacy service. This can be especially beneficial for people who are still deciding if they want to sell or not. It is worthwhile having your property valued outside of listing agency arena to ensure there is no pro listing bias. It is also good for people who are not around to manage the listing process, or who find selling and buying demanding and complex. Please contact us for more information on this service.
Some of the above text is from domain.com writer, Nicola Powell.