If you want to sell your home, now might be a good time even though property prices in Australia are dropping, it could create more interest as people try to find a bargain. However, the value of your home is an important factor to consider because if your price is too high for the market, potential buyers inspecting a lot of places might be discouraged. On the other hand, if your price is too low, you’re selling yourself short. If your price is spot on, you could start a bidding war because buyers will see the value.
You might well ask how do you find the perfect pricing zone? There are strategies to ensure your price is acceptable to the market.
Figuring Out the Value of Your Home
There are three steps you can take to obtain an accurate estimate of the value of your home so you attract many buyers and avoid disappointing surprises
The best way to get to a baseline for the value of your home is to delve into the huge amounts of data online. Search sites such as Domain and realestate.com for homes such as yours to compare them to get an idea of where to begin and you’ll see realistic sale prices and be able to form a baseline figure. Then you can dig deeper to be more specific.
Know Your Market
When working out a price for your home, measure it against houses similar to yours and in the same or similar locations. If you have a three-bedroom home with a newly renovated master bedroom or bathroom then look for similar houses. You definitely shouldn’t compare a Federation cottage with a Mansion. A great idea is to attend open inspections of homes similar to yours and you can have a look at how the home is presented.
Call in the Professionals
In July 2016, Roy Morgan research found that the old saying that a change is as good as a holiday wasn’t true for Australians. They found that 40.7 percent of us lived at the same address for 10 years or more. Which means it’s not every day that you sell your home andreal estate agents are selling them all the time so perhaps it’s a good time to call in the pros like Naked Real Estate who know prices and the market.
Understanding the Appraisal Process
Once you find a buyer you’re on your way, but most buyers will need a mortgage so this is another reason to have your home price just right.
Banks won’t usually allow anyone to borrow more than a home’s value and there are reasons for this. If the property is collateral for the loan and something unfortunate happens and your buyer has to foreclose, the bank or lender then sells the house to recover their investment. It also protects the buyer from paying over the value of the property. In a competitive market, buyers might pay more to close a deal. But if you’re realistic about the price it will attract most buyers because there will be more financing options available.
The final figure
The appraisal process is the same as the one you did - our job is to find houses comparable to yours near your house.