What price should I list my house for?
How do I establish how much my property is worth?
There are many factors which affect the price of a property - the type of property and its location are probably the most important factors. The market conditions and the demand for properties are also extremely influential.
In order to obtain an indicative figure, search our website for properties that are currently available in and around your suburb/location to locate properties similar to yours. Recent sales are also most helpful as properties do not always sell for their asking price.
The best way of establishing an estimated selling price for your property would be to ask your local LJ Hooker agent to view the property and give you their professional opinion.
Agents have suggested a likely selling figure for my property, but I would like to sell for more. Why not start at my higher figure and lower the asking price later if need be?
Agents should work towards obtaining the highest possible price for you; however, setting the price above expectations is not necessarily the best approach to take to achieve this.
All agents should be providing you with a list of recent sales in your area AND a list of properties similar to yours that are currently on the market. If it helps, ask the agents for a list of properties currently on the market in the price range you are wishing to sell for as these other homes will effectively be your competition for buyers when you take your property to the market. By reviewing these, you should be able to ascertain an objective guide to what your property is likely to sell for.
Interest in a property is at its highest when it first hits the market and good agents will have a pool of genuine buyers eager to purchase. Often they have been looking for some time and are knowledgeable about prices in the area. Price the property too high and you may lose the impact of the first exposure by attracting buyers who expect more for their dollar. Buyers do often spend a little more than they intended to when they find their dream home, but pricing your property too high may result in genuine buyers for the property not viewing it in the first instance as it is beyond their set limit. You will lose buyers who may have fallen in love with your home had they seen it and considered it to be within their means. Unfortunately, the longer your property stays on the market, the more "stale" it becomes. Even if you go on to drop the price, if buyers see it on the market for a long time they may start to consider there must be something wrong with it. If you definitely wish to aim for a higher price, your agent will follow your instructions.
The best course of action in this instance is to consider putting your property to auction as it generates competition among buyers to bid against each other to secure the property. If there is a buyer who is willing to pay at the upper end for your property, this is the best way to generate the atmosphere to achieve it.
In some states and territories an agent is required by legislation to include the estimated selling price in the agency agreement.
I have had four agents look at my property with a view to selling it. Three have suggested a selling price within a few thousand dollars of each other; however, the other agent has priced the property at tens of thousands more. Why wouldn't I list with th
It would seem as if the agent suggesting the higher figure is trying to provide a high figure in an attempt to have you list with them. These agents often try to convince you to take a lower figure later when the home remains unsold.
An agent's role is to interpret the market - they do not create it. A good agent will provide you with a Comparative Market Appraisal, which details recent sales in the area and current competition (these are the properties like yours which are currently for sale) to help you establish the right price for your home and support the price they have provided you with.
I have done a lot of work on my property over the years but now I have to sell. The agents have said how beautiful the property is but that it has been "overcapitalised". What does this mean?
Essentially, what the agent means when they say your property is overcapitalised is that you may have spent more money on your property than you will recoup in the sale price. It is most likely that the work you have done on your property will add to its value, whether it's landscaping or the interiors; however, not in every instance will it mean that the full value of your improvements will be realised in the eventual price of sale.
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