Master the art of pricing your home to sell

Nobody wants a property that just sits stagnantly on the market. Older listings are typically harder to sell, as they raise suspicion that something must be off with the property. Eventually they sell … but often at a discounted rate.

In many cases, the only thing that delays the sale of these properties is the asking price. Everyone wants top dollar for their asset, but sometimes it pays to meet the market. When you meet the market, you attract buyers. And all you need is one competitive buyer to snag a good deal.

Sounds simple, right? It is, in theory. But it does take a little bit of preparation, starting with having comprehensive knowledge of the market in which you’re selling.

Research is everything

With so much property data at our fingertips, it’s easy to research property prices in your local area. Websites such as APM PriceFinder can give you property price growth data specific to your suburb and the type of residence you are buying.

APM PriceFinder’s head of data and research, Yvonne Chan, says property reports like the Home Price Guide are an essential tool for home sellers.

“They enable home sellers to make a better-informed decision on the sale of their property, as they are also used by major banks and real estate agents,” Yvonne says.

“APM PriceFinder’s range of reports offer the most up-to-date sale prices, photos, market data and current market price estimate,” she adds.

Meet the market

Once you know what properties of similar type and style are going for in your area, the next step is to meet the market. Unfortunately, this is where most sellers struggle. Meeting the market has a massive benefit: it attracts buyer interest. No one is going to offer you top dollar for your property if they aren’t interested in seeing it. However, entice a few interested buyers to an open-house inspection and you might just find that a battle of prices ensues, leaving you richer than you imagined.

Develop a pricing strategy

A pricing strategy is a good way to maximise both buyer interest and profitability, but it can be a hard thing to do alone. This is where agents can really earn their keep.

Taking into consideration market demand and the intended buyer, property type and style, your agent will advise that you list the property for a specific price, for ‘offers above’ a certain figure, for a price range, on buyer application, or for auction.

The 2013 REB Awards Auctioneer of the Year, Damien Cooley from Cooley Auctions, says that an auction can often be the best vendor strategy.

“Auctions will always succeed in achieving the best possible result, whether the market is weak, or strong, as it is now,” he says.

According to Damien, there are many reasons why auctions can get the best price for a seller. Some of these reasons are the reduced number of days that a property sits on the market, a sense of urgency for buyers, maximised property exposure, the removal of price as a barrier and the potentially competitive buying environment.

“Another benefit that can’t be overlooked is that auctions give the seller three chances to sell the property: before, during or after the auction takes place,” Damien says.

In fact, 71 per cent of the properties that sold at auction in July either sold at or above their written reserve, according to the Cooley Index.  Lastly, Damien says that auctions are the most transparent method of sale, for buyers and sellers alike.

Before you sell, do your research, know your market and work with your agent on an effective pricing and selling strategy. That way, it won’t be long until you have money in the bank and can embark on your next property adventure.