When selling a house that you’ve called your own for a long time, it is hard to set a realistic price. It is especially hard to accept that the house you love might be worth less than you think.
You may have lived in the home for decades, raised children there and seen them off to school, staged parties, weddings and anything else that push the sentimental value of your four walls skyrocketing…at least in your eyes.
Unfortunately, your potential buyer pool has no idea and their enthusiasm for the home may not match yours.
Like any financial decision, and especially for property, it is best to leave emotion out of it wherever possible. Luckily you have a real estate agent to do this for you.
He or she can give you an honest opinion on the price range that you should be looking to set for the property; with the benefit of being an outsider…an outsider with an expert knowledge of the local property market.
An agent’s job is to get the best price possible for your home. When they give you advice on how much they think it is worth, it is important to listen and respect their knowledge. They will know almost exactly what a home is worth based on its street, number of bedrooms and bathrooms; block size and proximity to amenities like shops, schools and transport.
Asking the right price for the property will generate more competition for it and may get you a better than expected result. It will mean your home is seen by more people, whether by filtering their online searches or looking in certain sections of newspapers.
The more people that turn up and want your home, the more money the eventual buyer will end up having to pay to secure it.
Conversely, asking too much is likely to have the opposite effect. A lack of interest in the home will force you to discount the price, which can have much worse repercussions. Lowering the asking price after already being on the market for a few weeks will make people suspicious.
They will want to know why the price is suddenly lower. Does the home have problems? Are you desperate to sell? These are the thoughts that you do not want going through the heads of the buyers. A realistic price will have them focusing on all the good features, not the shortcomings.
Over the past decade, he has attained widespread knowledge of Australia’s many unique property markets and is an authority on all things buying, selling and investing.
His commentary appears every Saturday in the Daily Telegraph Real Estate lift out, as well as online at news.com.au.