Setting the right price for your property is one of the most critical decisions you’ll make when selling. Set the price too high and you’ll deter potential buyers; set it too low and you’ll miss out on potential profit.
Understanding property pricing requires a strategic approach, and we’re here to help you deal with the process.
The Importance of an Accurate Property Valuation
Determining your property’s value starts with a comparative market appraisal (CMA). This involves assessing recent sales of similar properties in your area. But remember: not all properties are directly comparable. You can’t simply take the highest-priced home in your suburb and assume yours will fetch the same amount. Factors such as:
- Land size
- Property condition
- Unique features
- Proximity to schools, transport, and amenities
… all influence value, and each must be weighed carefully.
As realestate.com.au states: “Ultimately, property prices are based on opinion. People will pay what they think a property is worth, and emotions will typically influence their offer as much as an analysis of recent comparable sales.” This is why using multiple data points and professional insights is important.
Beware of Overinflated Agent Estimates
Some real estate agents may inflate price estimates to win your business. It’s an unfortunate reality that sellers often gravitate towards agents who suggest the highest potential sale price, even if it’s unrealistic.
At First Priority Realty, we believe in honesty. We provide realistic and research-backed valuations to ensure your home is priced correctly for the market. Our clients choose us because we prioritise transparency and successful outcomes over empty promises.
Choosing the Right Sales Strategy: Auction vs Private Treaty
Pricing is also influenced by how you sell your property. The two main methods in Australia are auction and private treaty (private sale). Each has its advantages, depending on market conditions and property location.
Auction
- Creates competition, often driving up the final sale price.
- Ideal for high-demand areas and unique properties.
- Requires a marketing campaign leading up to auction day.
- We always check auction clearance rates in your area before recommending this strategy.
Private Treaty
- Allows buyers to negotiate directly with the seller.
- Provides more control over the sale process.
- Best suited for markets with steady buyer interest.
Why Work With an Experienced Agent?
The right real estate agent doesn’t just slap a price on your home and hope for the best. A skilled agent will:
- Conduct thorough market research.
- Analyse current buyer demand.
- Recommend the best sales method.
- Provide a clear pricing strategy.
At First Priority Realty, we combine expertise with data-driven insights to ensure your property is positioned for maximum success.
Set the Right Price From Day One
An overpriced home sits on the market, leading to price reductions that make buyers suspicious. An underpriced home sells fast but undervalues your asset. The key is getting it right from the start.
Want expert guidance on property pricing? Contact us today for a realistic property appraisal and tailored sales strategy.