What selling price should I ask for my property?
Raine and Horne Murraylands’ Michael Cox and Casey DeMichele offer their advice.
This sponsored story is brought to you by Raine and Horne Murraylands.
Regional South Australia has been one of the nation’s hottest property markets in recent years, as values have risen fast and kept rising.
The cost of an average home has gone up by 67.1 per cent since March 2020, according to consultants PropTrack.
The rapid pace of change can make it hard to figure out what price you should set if you plan on selling.
Thankfully, the experts at Raine and Horne Murraylands have a few suggestions.
Take a look at comparable properties in your area
The first step in setting a sale price is comparing your property with others in your area: those on the market or those that have recently sold.
Consider things like:
- Land size
- Number of bedrooms
- Area of your home and any sheds
- Age and condition of your home
It’s worth talking to a real estate agent to help with this exercise – he or she will be able to tell you what has sold lately and how prices have evolved in recent months.
An agent will also be able to determine whether your home is in good condition compared with those of a similar size and age.
“It’s tricky at the moment because there are so few properties on the market,” Raine and Horne sales consultant Casey DeMichele says.
“There’s not a lot to compare with.”
Consider setting a price range
In years gone by, when buyers were scarce and properties tended to stay on the market for a longer period, vendors were usually told to put a specific price tag on their properties.
If you advertised a property at “$420,000 to $440,000”, for example, wouldn’t everyone try to lowball you?
Not any more, says senior property consultant Michael Cox.
Buyers who are able to pay in cash might make an offer at the low end of a range, but those whose finance is subject to the sale of another property might go higher in order to entice a vendor.
“With more competition for every property, there’s a lot more drive for buyers towards that high end,” he says.
“Some vendors are looking for the highest price regardless of terms, while others might not be so concerned – because prices have gone up so much, they’ll still get a good price compared to what they expected.”
It is not unheard-of for buyers to make offers higher than the top of a price range, either, Casey says.
“For a while there it was almost every offer,” she says.
“It has settled down a little bit more recently, but it’s still happening.”
Get the advice that will help you set the right price the first time
It’s important to keep your wits about you if you speak with more than one real estate agent about selling your property.
Some may suggest they can achieve a higher price for you – one which would net them a bigger commission and make you both wealthier.
But your local experts will have a better idea about the local property market.
Nothing could be more embarrassing than dropping your sale price because yours is the only property in town that hasn’t sold.
Remember: one of the questions prospective buyers are likely to ask about a property is “how long has it been on the market?”
If the answer is “longer than most”, buyers might be inclined to think they can make a lower offer.
Contact Raine and Horne Murraylands today for a free and accurate appraisal of your property’s worth.
More information
The team at Raine and Horne Murraylands are here to advise you 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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Peri Strathearn
