So you have made the decision. You want to sell your property. With that comes many questions. Perhaps the most critical being: “how much do I sell my property for? Or “what is my property worth?”
When the market is booming, it’s easy to get caught up in the talk and think that you can set the price high and someone will buy. But the real estate market changes constantly and at times, quickly!
In setting a reasonable price you’ll want to consider your requirements, what return would you like, what expenses do you need to cover. You also need to consider what a buyer wants that you have, and what does a buyer value.
Buyers are savvy and can easily stay up to date with market information, so you need to consider their expectations and requirements as much as your own.
If this sounds too hard, channel your inner yogi spirit, breathe and read on for useful tips. Our sales experts at Atria, have put together information that will help you formulate your property sale price.
So breathe, one, two, three…
Why research is the key to understanding what to sell your property for
First off, we recommend you gather data about real estate in your neighbourhood. Look broadly at all property sales over the past 12 months within your neighbourhood and similar neighbourhoods. Then narrow in on similar property types. This will give you a comprehensive snapshot of the market specific to your suburb and property type.
Look at https://reiv.com.au for the most comprehensive market insights. You can find out how many properties similar to yours have been sold or passed in recently, the average sale price, the frequency of auctions etc.
Explore Council information: Council rate notices are formulated on the average value of each property in your suburb. They provide an indication of the land value to consider when formulating the price of your property. It’s also worth looking at any existing or proposed building works that could impact the value of your property, e.g. restrictions on planning.
Read some news: there are plenty of blogs, news articles and information out there on the property market. So, get googling and reading, check out the banks websites for guides on how to sell properties, general property and economic news and real estate specific sites.
Buyer’s mindset: the important piece that will help you price your property accurately
Like yoga, get into the right mindset. The mindset of your buyer! When working out what to sell your property for, put yourself in your buyer’s shoes. Consider these three questions any buyer will ask themselves.
What is the bank telling me? Are interest rates going up or down? Look at the bank’s website for insights on interest rates and fees that may limit a buyer’s price. Also, listen to what the RBA is predicting for interest rates and inflation.
What does the neighbourhood and property offer for my lifestyle? People want to live in homes that are close to beaches, parks, shops, schools, transport and so on. Places that feel warm and safe. So consider what your property and neighbourhood has to offer that matches a potential buyer’s lifestyle.
What do I need to do to make it my home? Buyers always look at what they need to do to a house to live in it, so ask yourself: “how much money would a buyer have to spend to make the property their home?” Take into account the costs for extensions, painting and landscaping. A buyer will reduce their maximum limit by these perceived costs.
Why a real estate agent can help you through the process
A real estate agent is an expert in their field, so they are super helpful when pricing your property. They have extensive knowledge of the local market and create a plan that takes into consideration your reason for selling, time-frame, and sales goals.
Do remember though that if a real estate agent is advising you on a price that feels too good to be true, it probably is!
At Atria we have more than twenty years of experience in the real estate market and are here to help our customers through the selling process so that you can keep calm and relaxed.
Call us on 03 8680 9421 or visit our Bay Street office for a chat about your selling needs.