Key factors you should consider when pricing your home for sale

Finding the right asking price is one of the critical elements when it comes to selling your home. It’s not as clear-cut as pricing a litre of milk. A plethora of factors can, and will, affect the price potential.

It may seem astonishing that vendors are discounting, considering price strength and demand for homes in Sydney. This highlights the importance of setting a realistic price, no matter the market.

Discounting occurs when the final price of a home sold by private treaty is lower than the original asking price. Domain data reveals five suburbs where homes had the heaviest slash to prices:  Bayview at 13 per cent, 11.2 per cent in Peakhurst, 10.8 per cent in Palm Beach, 10.5 per cent in Edmondson Park and Fairfield East at 10.4 per cent.

A true asking figure will ultimately encourage a timely sale. Buyers are likely to snap up a home priced too low and equally avoid unrealistic prices. Buyers are armed with information: we are in the era of data and buyers are using it.

Market research should be the starting point for anyone looking to sell. Seek out comparable sales within a realistic time frame –  there is no point looking at transactions from over a year ago because markets are dynamic and can change quickly.

Sticking to a three-month period will provide a clearer understanding of current market dynamics, helping to give a better price indication.

Be sure you are well informed of active listings. It really is about keeping your finger on the property pulse. Look for similar properties that have been on the market for some time. Why hasn’t the home sold? Is it because of an unrealistic price?

Care should be taken when comparing like-for-like properties. Two homes in the same street holding the same one-line description – “three bedrooms, two bathrooms and room for a pony” – will not achieve the same figure. One may have a better floor plan or sit within a different school catchment or development zone.

School catchment zones will likely affect buyers with families.
Photo: Fiona Morris

Catchment zones are an imperative part of the family buying journey and can affect price. The opportunist builder or developer will see value in a home that has development potential. These are just some elements that can attract a higher price tag.

Understand the ultimate finish (yes, those fixtures and fittings) can make a difference to asking price. A substantially renovated home is likely to attract a wider audience. Not everyone wants the hard graft of a home stuck in the ’80s that is prime for renovation. This is an extreme comparison.

Conducting your own research is key but don’t forget to ask the experts. Agents are entrenched in the market and brimming with information. Start by tracking down the agents that specialise in your suburb and gain insights.

The moral of the story – the best seller is an informed one.