Pricing a Property

When selling a property with an advertised price, it's important to get the pricing correct very quickly.  But how to do this?

1. Market Comparison:   Always look to what has sold recently as opposed to what’s on the market.  Quite often properties on the market have been there for a considerable period of time and if they have been that’s because they’re over-priced.  Even some of the new properties to the market are over-priced.
2. What comparable price properties have sold for recently – This is always the best guide as to how to price a property.
3. What a seller needs to make the move – Unfortunately, this is irrelevant. What a seller needs has no bearing on what the market will pay.
4. How much a real estate agent says a property is worth:  Nothing could be further from the truth.  A real estate agent only makes an educated guess.  No-one is ever sure of the value of a property until a motivated buyer is found.

Many people have a fear of under-pricing a property.  Sometimes, this can happen but with the expertise of a good agent, the property attracts great interest from the market and multiple offers are attracted and then a fair market price normally follows.  Quite often, properties sell significantly above the listed price especially if the price is set too low.  It is often better for the outcome to under-price a property than over-price it.

Some people believe that investing in a good marketing programme is a waste of money.  Nothing could be further from the truth!  A good marketing program and correct pricing strategy will ensure that buyers are attracted to the property and a sale can be expected quickly.

A word of caution:  With modern technology and a good marketing campaign, it can be expected that the market will react quickly should a property be priced correctly.  Holding a property on the market for “just the right buyer” can be more detrimental to a good outcome than biting the bullet and adjusting the price very early in the campaign.

It’s important when selling a property to engage a real estate agent who will be able to interpret the market and give you the right advice about advertising, pricing and strategy.  The second element to this is heeding the advice of the expert; bearing in mind it’s not what a seller wants for a property that determines value, it’s the buyer who determines value.

Marilyn Davies is a licensed Real Estate Agent selling residential property in the Northern Suburbs of Brisbane.

To talk to Marilyn about this or any other real estate matter, phone 0407149

or email marilyn.davies@harcourts.com.au