One of the most critical steps in selling your property is determining the right price.
Aside from getting the best price for your home, it’s also the key to attracting buyers and avoiding a drawn-out sales process. Additionally, the right price can enhance your negotiating power, align with mortgage approvals, and help you capitalise on the market’s momentum.
Understanding agent-based home valuations
A real estate agent’s primary approach to home valuation involves comparing your property to similar ones recently sold in the area. But they will also take into account thousands of other aspects of your property, such as luxury finishes, rust in the gutter or a gap in the garden that could affect curb appeal. Then, they will leverage their local market insights and prevailing trends and market sentiment to predict what potential buyers may be willing to pay.
It’s crucial to note that real estate agents are legally obligated to justify their pricing strategy with concrete sales evidence, which must be documented and retained. However, if you get a few valuations, you may notice they don’t all come back with the same price. This may be due to varying market knowledge, or some might inflate estimates to secure your listing. It underscores the importance of partnering with a trustworthy agent who prioritises your needs over theirs.
Weighing up your alternatives
Real estate agents aren’t the only option for valuing your home, you could also turn to an online tool, or a professional valuer.
Online estimates: Platforms like RealEstimate, Home Price Guide, and Oz Home Value offer a convenient way to receive an instant estimation. However, the issue with these tools lies in their simplicity – they might overlook critical factors like recent renovations or long-term maintenance neglect. Furthermore, unlike agents, these tools aren’t legally bound to provide accurate figures and they often sell your information to real estate agents.
A professional valuer: Hiring a valuer as an objective third party might seem like an attractive option, however this service typically costs around $400-$500. Although a valuer will take into account the condition of your home, they might overlook the current market’s willingness to pay a higher price for a property like yours.
Why choose an agent?
Using a real estate agent to price your property comes with several benefits that can help maximise your selling price:
1. Extensive local network: Agents often have a pool of potential buyers, including those who may have narrowly missed out on similar local properties. An experienced agent will leverage this network to secure a better price for your property.
2. Expert advice: Agents can provide immediate advice on minor improvements to help you get the most for your property. For example, they might suggest filling that garden gap with blooming flowers.
3. Personalised guidance: A good agent will consider your unique circumstances and goals, such as needing a swift sale or willingness to hold out for a premium price, enabling them to price and market your property strategically.
While there are several routes to determining your property’s selling price, understanding the pricing process and selecting the right professional support brings you one step closer to a successful sale.
Connect with our seasoned agents at Prudential Real Estate for expert advice, a bespoke approach, and a thorough property valuation.
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
