Be informed about price
One of the first questions we’re asked by sellers is what their home is likely to sell for. And it’s an understandable query given your home is most likely your biggest asset. When it comes to buying and selling real estate, the value of your home dictates what you might next be able to purchase.
While estimating the market value of a home isn’t an exact science, it’s thankfully also not an area where guesswork is used. In fact, most experienced agents can tell you that it’s all to do with understanding market movements and having a detailed knowledge of what is being bought and sold at any time. Essentially, the best way to create an informed view of what your home might sell for is to understand exactly what other homes are selling for in your area.
The first thing you should be doing as a prospective vendor is to start seeing what’s on the market in your area. Have a look at homes that are geographically closest to yours and physically similar – what these properties sell for will be the best barometer for the price you might achieve. Remember, their listing price isn’t necessarily their selling price. You should keep a close eye on what they finally sell for, as it may be far above their advertisement.
“It can be difficult to tell from a listing alone whether a property is truly comparable to yours.”
As local agents, we know exactly what homes are selling for and whether it was above or below expectations. We also have the additional knowledge of whether a developer bought the property or whether it was a sale due to genuine competition from homebuyers. This is invaluable when figuring out what another, similar, home will sell for.
It can be difficult to tell from a listing alone whether a property is truly comparable to yours. While the number of bedrooms, the size of the land and the general presentation can quickly tell you whether a property is superior or inferior, and allow you to adjust your price expectations accordingly, it usually takes visiting the home to work out how comparable it really is. Online portals such as RPData can offer valuable information, sometimes at a price, to assist consumers and professionals in determining a property’s value.
The other big question for any homeowner is about the market that they’re in. Are prices increasing or falling? Does this change depend on the type of property you own? In some markets, house prices are far outpacing apartment prices. Currently, in south-east Melbourne, real estate has been growing quite consistently for the past few years. Depending on the length of your campaign, when you intend to sell and the type of property you have – you may find that the future price estimate for your property is considerably more substantial.
“Are prices increasing or falling?”
Market movements are entirely dependent on demand and supply for your home. We have many active buyers on our books, who are all looking for different types of real estate. This helps us to make an informed decision about your likely selling price.
You can gauge the market yourself by attending open homes and speaking to local agents about where interest is highest and how the current influx of purchasers compares to last year.
Obtaining an appraisal
One of the best ways to work out a likely selling price is to speak to an agent. We can provide you with an assessment of your home’s value based on our professional expertise and knowledge of the market. This is known as an appraisal. We can also provide you with the reasoning for the estimate, including comparable recent sales and local demand.