Align the planets to sell your property for the best price
Property sales are, in some ways, similar to magical spells in fantasy films that require the alignment of the planets for its successful completion. The perfect property, the buyer, the seller, the estate agent - these "planets" all need to align perfectly in a successful sale. But it's the final piece that may prove the trickiest to get just right for the spell to work: the selling price.
Most sellers strive to achieve the best price for their property in the shortest period of time. One of the key factors in achieving this is to set a realistic and market-related advertising price for the property from the first day. It has been proven time and again that, on average, over-priced properties remain on the market for longer, and ultimately sells for less, when compared to properties that were accurately priced from the start.
So, the starting point is to get a qualified estate agent to conduct a proper market-related value estimation. Now, while the factors that influence valuations are generally well understood, there are a few criteria that may often be overlooked.
The micro-environment
While the property market and greater economy may influence a property's current value, each neighbourhood has a set of micro trends and influences that will also influence the value of a property. These factors change from season to season and require agents to keep an ear on the ground for the latest shifts.
Estate agents generally have an acute insight into the neighbourhood in which they work: insight gained over time and with experience of the local market. This intimate knowledge and in-depth understanding of a community and its real estate needs helps professional agents value a property accurately within its micro-environment.
The physical character
While virtual tours have become increasingly popular for valuations, a physical tour remains the best way to get a real feel for the property and its true value. Aspects like wooden flooring or creaking stairs may bring down a property's value, but if it is part of a much bigger character that can only be appreciated in person, what would have been a con can easily become a pro.
The possible experiences
When discussing the property with the agent, sellers are encouraged to share the most honest living experience the house offers, focusing on both the pros and the cons. This helps the estate agent to make informed adjustments around the value of the property, allowing the shortfalls and the benefits to influence the valuation from the start. When shortcomings come to light once the property is already on the market, the price may not seem as attractive to prospective buyers as it did at first glance.
The market factor
Property valuations are not conducted within a vacuum of time. They are subject to the influence of previous sales and market trends to come to the best possible number. By analysing the selling prices of similar properties, agents find what the value of a property is within the current market, allowing them to ultimately create a more competitive selling price. This also means that your property's value is not something that is set in stone.
The seller's last say
Sellers themselves also influence the price. When a quick sale is needed, the price will have to be more competitive. When there's no rush, sellers often opt to put the property on the market at a somewhat higher price to "test" the market. While the seller's instruction in terms of price may not affect the value of the property itself, it will certainly influence how long the property stays on the market.
Getting the last "planet" aligned for the perfect property sale may be one of the most crucial steps in the sale of any property. But when you have a Meridian iAgent conducting your property's valuation, your planets will be aligned in no time.
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This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
27 Jul 2021
Author Meridian Realty