Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.
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#6, 7 & 8: SETTING YOUR ASKING PRICE & BEING AWARE OF ALL COSTS WHEN SELLING YOUR HOME
We have already warned against becoming emotionally involved when selling your home, as this is what often results in properties coming to the market at an unrealistic asking price.
But there are other factors which will also determine whether prospective buyers see your property as fairly priced:
- ask yourself from the outset whether you “want to sell” or “need to sell”. If you find yourself in the former situation, you could lean towards the higher end of the valuation scale. However, if you are in the latter situation, you need to price your property at the bottom of the valuation scale
- a buyer only has a certain amount of funds available, or only has access to a specific amount of bond finance. This has to be used to secure the most appropriate property possible for his or her particular needs. Couple this to the advances in technology, which permit the buyer to research every possible property in the desired location. It becomes critical for sellers to be realistic about the price they set for their home
- obtain an understanding of what current market conditions are, i.e. is it currently a sellers’, buyers’ or a neutral market. A sellers’ market means that demand for property is strong and you could price your property slightly higher. A buyers’ market means that properties are not fetching the prices it has in the past. This could be the result of recent property prices having just become too expensive or as a result of the prevailing economic conditions.
PRICE YOUR HOME ACCURATELY
In the preceding section, we highlighted the advantages agents have in the process of valuing your property. This includes the benefit of agencies having access to digital platforms such as CMA (Comparative Market Analysis) to:
- extract the selling prices of comparable properties sold in your area over an extended period
- provide you with a projected valuation, based on your initial purchase price and compounded interest rates, over the ownership period
- establish how many properties had been sold in your area for different periods, providing you with a view of prevailing market conditions
- extract municipal valuations of your property and those in your surrounds.
An agent who uses this tool effectively, will be able to provide you with an accurate valuation of your property based on factual and extensive statistics.
BE AWARE OF CERTAIN COSTS YOU WILL HAVE TO INCUR DURING THE PROCESS
Sellers are often caught unawares by costs which they have to incur by law. These include:
- Electricity compliance
- Beetle certificate
- Plumbing compliance
- Gas certificate
Any non-compliance identified during the inspection will, in turn, translate into specific repair or upgrading costs to the seller.
These compliance inspections mostly occur during the conveyancing process. However, the seller may take it upon him or herself to have the inspections done prior to the marketing of the property. This will mean that you can present a prospective buyer with compliance certificates, reflecting your property’s “clean bill of health”.
A note of caution, though, when embarking on the compliance process. You may find there are a few service providers who may quote you on items which not necessarily require repair or upgrading for your property to be considered compliant. Therefore, be sure to use your agent’s knowledge and experience to access reputable and trustworthy service providers.
NEXT WEEK: SIGNING A MANDATE