Setting the right price when selling a home

Setting the right price when selling a home

Setting the right price when selling a home


POSTED BY John Ireland ON 18 Dec 2020

Many homeowners make the mistake in believing their property is worth significantly more than other similar properties in the suburb because they are emotionally attached to the home…

One of the most difficult decisions that a home owner has to make is decide on the selling price of their property. This is a difficult task because most people make emotional decisions about their home and everyone wants the most for their property. Setting the correct price for your home at the outset is critical because most homes attract the largest number of potential homebuyers within the first month of it being listed for sale.

A property which has just been listed on the market will generally attract a high number of people at home openings and a high level of inquiry from prospective homebuyers.

“If the purchase price is too high, then potential homebuyers will purchase a more competitively priced property in a nearby area.”

It is important for home sellers to remember that they are competing against every property that is listed for sale in surrounding areas. The longer the property is listed for sale, the few potential homebuyers will be interested in inspecting the property. It is no coincidence that one of the first questions homebuyers ask of a selling agent is how long the property has been listed for sale. Generally, most correctly priced properties sell much quicker than the national average selling times quoted from institutes.

If the property has been listed for sale more than three months, then homebuyers may begin to believe that there is some defect with the property. As a result, they will be more likely to offer a much lower price for the property the longer that it is listed for sale.

Even though a home may be beautifully presented and heavily advertised, it may not sell, if it is overpriced. However, if the home is well presented and well priced then it should sell quickly.

Homeowners also have to realise that local market conditions change which will impact on the selling price of a home. This is because not all suburbs rise in price at the same level and a suburb which has achieved a 10% increase in properties prices may only realize a 5% increase during the following year.

Written by By SHANE KEMPTON

In the current market, Vendors who are prepared to meet the market are the ones selling…If you’re thinking of selling or need the right property advise, please don’t hesitate to email or call us today.