If you are looking to sell your home in the near future, one of the most crucial aspects of selling is determining a fair market value for your property.
SO, HOW DO YOU GO ABOUT WORKING OUT FAIR MARKET VALUE?
First you should ask a Sales Consultant at one of our offices, Harcourts The Property People Campbelltown or Harcourts Lifestyles Mount Annan for a no-obligation Comparative Market Analysis (CMA).
The CMA will advise you of the current market value of your property by comparing your home with similar properties in your area that have recently sold. Using these as a guide, and considering the unique aspects of your home, you will gain a current market value.
Of course, similar homes are not always readily available, so sometimes you will need to add or subtract the differing features. For example, if there are few comparatives in the CMA, but a close comparative has a single garage, yet your home has a double, you can ask the Sales Consultant how much more value that adds to your home. If on the other hand, the other home has three bedrooms and yours has two bedrooms, then you may have to adjust the value down. There are also other factors that should be taken into consideration, such as location, to determine fair market value.
LIST WITH A PRICE OR AUCTION?
If you choose to auction, you will be letting the market determine the value of your property. If you list with a price, this will limit what a keen buyer may pay. Once a listing price has been established for a property, a ceiling has been placed on what a buyer expects to pay for it. Auction, on the other hand, offers a real opportunity to get more for the property.
You may be very pleasantly surprised by the price your home achieves on auction day, however it is sensible to have in mind a fair price you will be prepared to accept. This is where your CMA will be invaluable.
If you choose to market your property with a price, it is critical to set a fair market price for the following reasons:
- The best buyers inspect early – the longer a property is on the market, the lesser sense of urgency there is amongst buyers.
- Activity is at its highest when a property enters the market. Many buyers have automatic web alerts in place to notify them of new listings.
- The right price will attract the right buyers for that property, rather than buyers in a higher price bracket inspecting the property and expecting more based on its price.
- A property that is priced correctly attracts more realistic offers from buyers, resulting in a faster sale and often a better price.
- All properties deteriorate with time on the market. This means that the longer an overpriced property is on the market, the less perceived market value it will have.
- An overpriced home makes the competition look good – it helps other houses to sell.
DID YOU KNOW?
The average time it is taking to sell a home in your market indicates the market climate. It is very important you understand the market you are in, and the average time it is taking to sell a property. Ask your Sales Consultant about the current market in your location.
Should you have any questions, please speak to one of our Sales Consultants on 4628 7444.