Real Estate - Chris Hines

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REAL

ESTATE

with CHRIS HINES

FROM UNREAL ESTATE

The biggest issue many homeowners face when listing their house for sale is the price. You want to get the most you can, but be careful when it comes to pricing it too high.

Many homeowners are no doubt caught up in the great prices being achieved in the current buoyant market.

In making the decision to sell, you do the research to fi nd out what comparable homes in the area are selling for and how long it takes them to sell.

You decide to list your property at the top of the market because you have serious upgrades and the research shows comparable homes are moving pretty quickly. While you may be willing to wait a bit for an offer, you run a risk of sabotaging yourself.

Time is a two way street in the real estate industry. While you are probably not particularly interested in waiting a long time to move the property, buyers are considering time as well.

Specifi cally, they are wondering why so much time has passed since your home was fi rst listed. Is it an indication that there is something wrong with the property? Many potential buyers will start to think so. If you price the property at the top of the comparable market, you run this risk and selling becomes very diffi cult.

One justifi cation many sellers make for picking a high price are upgrades done to the property. In many scenarios, this is logical and makes practical sense. That being said, you may be in for a nasty surprise. Most buyers prefer to make the upgrades themselves, not pay a premium for what you have done. Ultimately, this means the higher price may fi nd little interest because the value of the upgrades is ignored by the potential buyers. This can also lead to the frustrating situation wherein you realise you spent more money on upgrades than you will ever get out of the property. Ouch.

Once again, another great reason to have an agent come and appraise your property before starting renovations if your aim is to sell.

If you are renovating for you own enjoyment and long term comfort in your home, by all means go ahead.

The fi nal risk associated with pricing your property at the top of the market is the potential it will be ignored. The general rule in real estate for buyers is to purchase the lowest priced home in an area and then fi x it up. With minor changes, appreciation gains can be signifi cant.

If your home is already at the top of the market, a buyer really cannot do this and will actually have to wait for other properties in the area to appreciate. Savvy or even moderately knowledgeable buyers will not take the bait.

Pricing your property for sale is a trick issue. Figure out your market and make your own conclusions. To maximise profi t, it is best to be in the middle of the market, but always below other homes that are superior to your property.

Once again, as I have said before, fi nd a reputable Real Estate Agent, who can appraise your property and also show you documented evidence on how they came to that price. Just remember one crucial piece of advice though, don’t choose an agent based solely on the price they tell you, choose the agent whom you believe has the relevant skills to market your property and get you the best price. Together, you can then come up with the correct pricing strategy.

The best strategy to get you home sold is correct pricing, great presentation and standout marketing. If you get these three key points correct, you put yourself in a great position to get your property sold regardless of market condition.

Many potential buyers will start to think so. If you price the property at the top of the comparable market, you run this risk and selling becomes very di cult.