Pricing your home

How to Price Your Home Correctly

So, you’re ready to sell your home. The most important thing you will need to do to get your home sold is price it correctly before it goes to market. While many factors like **presentation**, **location**, and **general condition** help your home sell, **price** is something that needs a lot of reflection and preparatory work by both you and your consultant.

Why Correct Pricing is Crucial

Pricing your home correctly is key to a successful sale. Here’s why:

It’s the market, or the buyers out there, that will decide what is a fair price for your home.
No amount of promotion or advertising will sell your home if it is placed on the market at too high a price.
The best buyers currently in the market for your home will most likely be the first people to inspect. If you price it too high, they may reject it immediately.
We find that you get more prospective buyers through in the initial stages of marketing than you do later in the programme.

Our Process for Pricing Your Home

Your **Ray White Bream Bay** Sales Consultant will work with you to explore comparable homes that have sold in recent months (i.e., homes that are similar to yours that have recently sold in your area). We don’t just give you figures; we work together to understand the market.

If you are marketing through the auction or tender processes, or simply without a price, we will listen to what the market is saying in terms of where it sees your home’s value. We will use this feedback as a guide. A decision to sell is the decision to meet the market.

Here are some key questions to ask as you price your property:

What is the average time it currently takes to sell a house in your area?
What is the average difference between the listing price and the sale price in your area?
Which market are you in (e.g., a buyers’ market, sellers’ market, or a balanced market)?
What competition do you have? Are there many homes for sale similar to yours?
How does your home’s asking price relate to the difference between the listing and sale price in your area?

The Dangers of Overpricing

Be wary of any agent who tries to ‘buy’ your listing by giving you a price way in excess of what you know it is worth. In the end, this could cost you money, not make you money. It is very easy to become emotional about your home, but overpricing can cause several problems:

It can reduce the number of people who view your home.
It can attract prospects in a higher bracket who see your home as being bad value.
It can cause people to walk away instead of trying to make an offer.
If your home is priced higher than a similar one, you may end up selling the competition for them.
It can cause financing problems and cause a sale to fall through.
The biggest problem with overpricing is that it can lead to your home being on the market longer and waste valuable time and resources.

Factors That Do Not Relate to the Value of Your Property

The Government (or Certified) Valuation: This is done for rating purposes only and does not relate to market value.
Improvements to Your Home: Improvements you have carried out do not necessarily add the same amount of value as you have spent.

Conclusion

We believe we don’t do you any favors by giving you distorted information just so that you think we are great. To get your home sold in as short a time as possible and for the best possible price, we prefer to tell you what’s happening every step of the way so that together we can establish what strategy to employ next. A well-trained negotiator is well worth paying for.

Please give us a call on 09 433 0334 or fill out the contact form below if you would like us to assist you with your home estimate.