The Key To Success!
Valuing your property is one of the most
important tasks that you are required to do when it comes to selling it. Regardless
whether you are doing it yourself or whether you use a real estate agent to sell your
property, remember the saying 'knowledge is power'. Well in
this case knowledge
is
satisfaction.
In some circumstances it is not difficult task, in others it is extremely difficult. Anyone regularly involved in the sale of property will be aware of this issue.
The more accurate you are able to value your property the more likely you will succeed in selling it quickly and with a high degree of satisfaction.
The Market is King
There is a saying 'Your property is only worth what the market is willing to pay'.
The simplest way to explain this saying is to picture a residential estate that may be 6 years old. In the estate there may be about 500 homes. These can be 3, 4 or 5 bedroom homes in single level or double storey format. For example sake lets say that position is not important.
Each weekend there are a number of '3 bedroom
with study' properties sold in similar condition. By looking a the sales results of these
properties and comparing "apples with apples" you will find in this case only a small variation in price
between the lowest priced and the highest price.
Still with our example above, if you wished to sell a similar
property in the same estate your expected sale price should be within
the range of the highest and lowest as mentioned above depending on a
number of factors. It is very likely that you will find it difficult to sell your property until your
price is priced within the expected range.
We admit that the above is a very simplistic explanation when there are so many variables when it comes to house pricing, but it does help to understand the comment "a house is only worth what the market is willing to pay".
How Do I Value My Property?
First of all you need to invest a little of
your time in research. There is nothing mysterious about this as it applies to anything
that you would like to sell or buy.
The first thing to do is ask the question 'What does a buyer look at when valuing property?' This is an important question to note as very few buyers will commit to a property without carrying out some research. These include:
- Attended a number of open inspections to see the condition of the property and to gain an idea of the price being quoted
- Attending a number of auctions to see what properties they are interested in actually sell for
- They have perused the local and major newspapers and any other property based publications applicable to the area
- They may have obtained a list of sales results for the area
NOTE: when looking at properties that are yet to be sold, properties sold by 'Private Sale' are generally over quoted to allow for negotiation and properties sold by 'Auction' are generally under quoted to attract prospective buyers.
The above points provide the buyer with the price range for property they are looking to buy. If you as the vendor carry out similar research then you will have every opportunity to work out fairly accurately the selling range of your property.
Formal Valuations and Real Estate Agent Appraisals
If you are still uncertain, even after all your research, at a cost, you can consider having your property valued by an independent valuer. This can aid you in having a starting point for your sale.
Real estate agents appraisals are not formal valuations. A Valuer is someone who is able to (and has the professional qualifications), in a court of law, stand up and swear on oath as to the value of the real estate in question.
An appraisal is a rough guess at best. Be a healthy sceptic and think that generally an appraisal is what the agent needs to say to win your business. You will not be able to validate the appraisal unless you have done your own research.
Can I get more Help?
Contact us to find out how we can assist to address this important issue, it's time well spent.
We look forward to speaking with you soon.