When selling your property, if you start with an expectation or sales price that is too high, you will only become disappointed and need to drop it later. By this time, the property will become old news and you will never be able to recapture that flurry of initial activity that you experience within the first few weeks of listing.
This could mean that your home may take much longer to sell. Even if you do manage to sell to an uninformed buyer, which is highly unlikely but sometimes does occur, their bank will need a valuation on the property. If comparable sales for the last 6 months don’t support the sale price, then the lender will not proceed and your sale will fall apart. You could perhaps attempt to renegotiate with the same buyer, but this puts the buyer into a position of power and they may reduce their offer considerably or even change their mind.
When you put the property back on the market, the longer it sits there and especially after a failed contract, will become much harder to sell. Potential buyers will think you might be getting desperate and submit only low offers. By overpricing your property at the beginning, you might end up accepting a lower price than you would have normally received.
Setting a realistic price from the outset is crucial to achieving the best result in the shortest time frame. This is why at Innovative Property, part of our service to you is arranging for an independent Registered Market Valuation to be carried out. This sets a realistic benchmark and provides an indication of where you should expect to find the majority of buyer interest. And of course, under competitive bidding conditions in a rising market, the sky is the limit.
Now you may ask, Why would I need a valuation when the real estate agent has already told me what my property is worth? Well, the truth is that very few real estate agents are actually trained Valuers. Besides, you never know whether an agent’s motivation to list your property has influenced their market appraisal of your home. Having an independent assessment is highly advisable.
If you are thinking of selling, before you call in the local real estate agents be sure to give us a call on 0411 522233. You will be amazed at the difference our Seller’s Advocacy service will make to your final result and overall sales experience. www.innovativeproperty.net.au
Kathryn Fantov, Director
