5 Strategies to Price Your Property to Sell!
If you are considering selling your property, you need to think about how much your property is worth to determine the right listing price.
Selecting the right listing price can be a challenge, as the price needs to reflect the market, what buyers are willing to pay, while achieving your ideal sales outcome and delivering you a healthy return.
So how do you set the right price for your property?
Here are 5 strategies that will help price your property for a successful sale.
01. APPEAL TO THE MARKET
As you know, buying real estate is a substantial investment, often one of the largest purchases in people’s life. People are more cautious when it comes to buying real estate, when compared to lower value purchases such as a new TV or microwave. It is much easier to return an appliance than it is to return a property.
Buyers do not want to be the only one who is interested in your property. They tend to feel more comfortable when more people are interested as it creates a higher sense of value and more competition. This is an important consideration when pricing your property as you must ensure that the price appeals to the wider market to generate interest from more than one buyer.
02. PRICE IT FOR ONLINE SEARCH
Set your property a reasonable price range to allow it to be found in real estate searches either online or in your agent’s database. For example, if you set your asking price at $500,000, then ensure that you (or your agent) set the search price range for the internet between $480,000 - $525,000, it widens the pool of potential buyers, increasing the chance of finding the right buyer for your property, who is willing to pay the highest value.
03. SELECT A SIMPLE VALUE
Although you can set the asking price to whatever value you like, it is not advisable to be too specific or creative, for example setting an asking price of $717,658. An extremely specific asking price will draw attention to your property, but it probably won’t be the right sort of attention. It will cause people to be too focussed on the price and curious to know how you calculated that figure rather than focussing on the property, its location and features.
You want to showcase the property and allow your agent to highlight the best features, rather than focus on particular price discussions with potential buyers. It is best leaving some things to the imagination and setting a simple asking range of even numbers.
04. HAVE A PLAN
When setting a price for your property, it is important to have realistic expectations. You may perceive your property to have a higher intangible worth, or value more highly a certain feature of the property. You need to be independent and unbiased and think about the property from the perspective of the potential buyer – what would someone else be willing to pay for the property, based on the facts. Discuss an initial asking price with your agent, one that should attract buyers, let that run for no more than two weeks, and adjust it quickly if it isn’t attracting offers. Hanging out for a too high price can cost you a lot in the long term as buyers will start to ask “what’s wrong with it”
05. CONTINUE THE DISCUSSION WITH YOUR AGENT
Once you have decided on a price for your property, that’s not the end of price discussions. Your property price may need to be flexible to consider changing market conditions, buyer interest or new information based on other properties in your local area. You want to make sure you get the best possible price for your property, regardless of other factors, and to do this, you need to have ongoing discussions about price with your agent.
At Maggie Dixon Real Estate, we ensure that we continuously review and discuss the price potential of your property and set the pricing strategy right at the start. We will review the selling strategy regularly so we can maximise the value of your property.