When selling a house, how much is too much to ask?
Home values are rising in the Murraylands, so how can a vendor decide on a selling price? Raine and Horne’s Michael Cox and Casey DeMichele offer their advice.
This sponsored story is brought to you by Raine and Horne Murraylands.
The Murraylands’ fast-rising property market is mostly good news for sellers, but it has one drawback, too.
On the bright side, vendors are achieving higher returns on their investments than ever, especially if they’ve owned a property for more than a handful of years.
However, in such a fluid market, it can be hard to know exactly where to set your selling price.
With that in mind, if you’re thinking of selling, Raine and Horne Murraylands’ Michael Cox and Casey DeMichele can suggest a few tips and tricks.
First, keep your cool
“We saw the same thing with Tailem Bend when the Bend Motorsport Park was announced,” Michael says.
“There was so much excitement, but then there was the second phase: people going ‘Harry down the road sold for $250,000, so I’m gonna put on another hundred and sell for $350,000’.
“That’s not the advice a professional agent is going to give you.”
Yes, it’s an exciting time, Casey says – “but you still need to keep your expectations realistic”.
On that note…
Beware the big-money promise
You may be shocked to learn that there are agents out there who will do anything and everything to secure your business.
That may include making unrealistic promises about the sale price they can achieve.
Agents who have been active in a market for a long time, and who keep up to date with local trends – like the team at Raine and Horne Murraylands – are going to be best positioned to help you find the right price point.
“If you’re happy to be patient and have a go (at a high price), we’re happy as well,” Casey says.
“But a longer time on the market can lead to buyers thinking ‘what’s wrong with this property?’
“In the end, you might end up having to take less that what we originally said.”
Think about the process
As you consider where to set your asking price, ask yourself: how will your real estate agent help you achieve that goal?
It’s easy enough to walk into a place, have a look around and come up with a number.
But does that agent have the team behind them – photography, marketing – to get your property sold without the need for any embarrassing price reductions?
“We’re going to put a process in place to achieve the best result we can,” Michael says.
When you have leverage, use it
Real estate can be a game of chicken at times: a vendor wants to achieve X, a buyer wants to pay Y, and neither side is willing to blink.
In those situations, the last thing you want to do is show any weakness – such as, for example, coming down from a high initial asking price.
“When a property is priced and marketed correctly, all the leverage is with the agent and the seller,” Michael says.
“When it has been on the market for a long time, you lose that leverage and give it back to the buyer.”
It’s worth getting an appraisal
In the current market, having an agent do a proper appraisal – not just a quick once-over, or a guess based on your property’s features – is more important than ever.
“We spend a lot of time on our appraisals, what we’re going to do and how we’re going to achieve that,” Michael says.
“Eight years ago, as local agents, you could walk into any property and … nail (its value) to within $5000 or $10,000.
“Every property had 20 comparables on the market, and prices had been the same for years.
“Now, every property that sells is for a record price, just about, and six months might make a difference of $15,000 or $20,000 … (so) you need to rely on an agent’s experience.”
Ultimately, it’s your property, your decision about who to work with, and your right to set the magic number.
But those choices are important.
“I encourage people to consider an agent’s reputation, their time in the industry, their results in the local market over a number of years, and agents who are transparent and explain their strategy to get a certain price,” Michael says.
The team at Raine and Horne Murraylands are here to help you with advice on any real estate matter.
Visit www.raineandhorne.com.au/murraylands, call 8532 3833 or drop into the office at 4 Seventh Street, Murray Bridge.
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