January 13, 2016

How To Determine The Value Of Your Property

When selling a property, the million dollar question is, “what is it worth?” Here, RE/MAX Success General Manager, Daniel Burrett provides some tips on how to determine the value of your house.

  • Contrary to popular belief, it’s not you or your agent who sets the value, it’s the market; so be objective!
  • It’s very easy for buyers to do their research these days. All the information is right there on the internet. Regretfully, they won’t pay for your overcapitalised renovations, ‘above market’ expectations or when (and I refer to the common adage) – “we may have paid a bit much for our house when we bought it”.
  • There are a number of factors you can consider to help you choose the right price tag. Look at similar ‘sold’ or ‘for sale’ properties in your area – ones within about a kilometre of where you live. This will reflect a realistic value of your home. But beware – make sure you are comparing like for like. Look at location first, then size and lastly, conditions and features.
  • If your neighbourhood has a ‘right side of the tracks’ and ‘wrong side’, only choose properties on the same side as you.
  • Also remember, just because they are ‘for sale’ for a particular price, this does not represent what they may end up actually selling for.
  • The first 3 weeks of any sales campaign are vital. If you set your price too high, you could lose potential buyers.
  • The longer you are on the market, the less buyers are prepared to pay. They conceive that there is either something wrong with the home or that it is overpriced.
  • It’s your agent’s job to market your property and negotiate for you – but they can’t do that if the offers have dried up. An initial lower offer could simply be a ‘starting point’ for negotiating.
  • Finally, think about the consequences of rejecting an offer lower than you expected – it could be better to cut your losses and move on.

If you would like a professional and thorough guide through the selling process, contact your preferred RE/MAX Success Sales Agent today.

Article by RE/MAX Success

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