It’s spring time, the weather is warmer, and more people are out and about looking at open homes. As such, spring is often a popular time to list homes for sale. So if you are looking to sell your property, how much is your home worth?
Did you know?
The average time it is taking to sell a home in your market indicates the market climate. It is very important a seller understands which market they are in and the average time it is taking to sell a property within that market. Ask your sales consultant about the current market in your location.
There are three types of market climates:
A seller’s market
There are lots of buyers and very few homes for sale. High demand for property is in the seller’s favour as properties spend less time on the market and sale prices rise due to scarcity.
A buyer’s market
Often there are literally hundreds of homes for sale and very few buyers. High demand for buyers is in the buyer’s favour as properties stay on the market much longer and sale prices reduce to compete for buyers.
A balanced market
Numbers of buyers and properties for sale are about equal. Neither buyer nor seller has an advantage as properties are not languishing on the market or being snaffled up.
If you have decided now is the time to make a move, one of the most crucial aspects of selling is determining a fair market value for your property.
How do you go about doing this?
If you choose to market your home with Harcourts, your sales consultant will provide you with a comparative market analysis (CMA).
This will help advise you of the market value of your property by comparing your home with others that have sold recently. Using these properties as a guide, you can objectively calculate an accurate market value.
Of course, identical homes are not always readily available, so sometimes you will need to add or subtract the differing features. For example, if one of the comparative properties in the CMA has a single garage yet your home has a double, you can discuss with your sales consultant how much more value that places on your home. If on the other hand, the other home has three bedrooms and yours only has two, then you might conclude that your property may be worth less.
If you choose to auction, you will be letting the market determine the value of your property. Marketing with a price limits what a keen buyer may pay. Once a listing price has been established for a property, a ceiling has been placed on what a buyer expects to pay for it. Auction, on the other hand, offers a real opportunity to get more for a property than the seller might expect.
You may be very pleasantly surprised by the price your home achieves on auction day, however it is sensible to have in mind a fair price you would be prepared to accept. This is where your CMA will be invaluable.
If you choose to market your property with a price indication, it is absolutely critical to set this at a fair market rate for the following reasons:
- The best buyers inspect first – the longer a property is on the market, the less sense of urgency there is amongst the buyers.
- Website activity is at its highest when a property first enters the market. Many buyers have an automatic alert in place to notify them of new listings.
- The right price will attract the right buyers for that particular property rather than buyers in a higher price bracket inspecting the property and expecting more based on its price.
- A fair market price attracts more offers, resulting in a faster sale.
- Urgency creates more realistic offers from buyers and often a better price achieved.
- All listings are perishable and deteriorate with time on the market. Therefore, the longer an overpriced listing is on the market, the less perceived market value it will have.
- An overpriced home makes the competition look good – it helps other houses to sell.
If you’re looking to sell your house soon get a free no obligation appraisal by clicking the link below.