Choosing the right sale price is key to selling in a buyer's market
Selling your property can often be a stressful and weary process. Regardless of market conditions if you are serious about selling your property it is vital to have your property correctly priced.
Most Agents will confirm that you only have one shot to get it right before prospective buyers move on to sellers who are meeting the market.
There are three options to consider when determining the value of your property and what price is reflected in your marketing.
1. Appraisal
Real estate agents provide their property appraisals based on a sound knowledge of the local area and recent sale prices.
Most real estate agents are able to use their expertise and knowledge of the local area and current market conditions in order to give a value of what sale price can be achieved for your property.
Appraisals are generally free, and are requested by potential sellers to get a good understanding for the local market.
2. Professional valuation
A professional valuation is conducted by a qualified valuer who has undergone specific training and education surrounding property.
Generally, the seller will pay a fee for their property to be professionally valuated which entails with it a written report detailing the property’s value, along with explanations of why and how this value was determined.
Once again this is primarily based on recent sales of similar properties in the local market place.
3. Computer generated report
There is a seemingly endless choice on the internet of price predictions.
Sellers and particularly buyers should take any prediction merely as a starting point in determining a property’s value and not an official appraisal.
These computer generated reports are based upon information that is fed into the database, such as recent sale prices for similar configured properties eg three bedroom and two bathrooms.
But this mathematical formula does not take into account the important features of a property, including the condition of kitchens and bathrooms, renovations, specific features, lifestyle features or views and outlooks of a property.
There is no way for these computer models to systematically gather and verify the type of information where the value is based upon how the property finally appeals to the buyer. Because of this, these algorithms can’t use that information.
Only the real estate agent who is constantly on the ground in your area has a sound knowledge of the local property market, and can provide a sensible comparison of how your property relates to the market.
Source: reiwa.com.au
