After the long lockdowns, seller’s market is back on fire. Melbourne property prices are rebounding, and the market is getting rushed with listings. While selling a property & a home, setting up the price correctly is one of the biggest concerns of vendors.
The success of a real estate sale depends largely on the valuation of a house or an apartment. A property offered at the right price always ends up selling at the best possible value.
A Wrong Appraisal of The Property Often Scares off Potential Buyers.
It may seem very obvious, but the vast majority of owners set the sale price above the market value due to the emotional attachment towards their homes.
Valuing the house from a sentimental perspective or inflating the amount asked for it ends up being harmful. Therefore, anyone looking to sell a house quickly should offer it based on market prices and not just seek to make a huge gain.
Your home estimate should only be based on facts:
- Energy performance
- Market price
- Close environment
- Presence of terrace and garden, modern kitchen, and other positive points.
Even if you are looking to sell a house between individuals, do not hesitate to hire an agent for an estimate, which will prevent you from being biased on the price of the house.
4 Critical Mistakes Sellers Make That Influence a Home’ Sale
- Following the highest sale price
- Pricing the property very low
- Not doing market research for valuation
- Not consulting any expert
Here are the ways to save from wrong property appraisal.
Determine The Selling Price According to The Purchase Price
When it comes time to sell your home, it makes perfect sense to want to make some profit. However, it is important to consider the actual market context in order to set a selling price that is both fair and likely to attract buyers to you.
Moreover, if you are currently in a buyer’s market and they, therefore, have a multitude of possibilities from which to choose, you will have to take this into account when setting your selling price. Slightly too high a price could cause you to lose valuable opportunities, which you wouldn’t if the market was favorable to you.
Based on The Sale Price Obtained By Your Neighbors
When selling their house, some people will have the first instinct to find out about the price at which their neighbors have managed to sell their property. While it is true that the location of your home will have an effect on its value in the eyes of buyers (notably because of the proximity of certain services), this is only one criterion among many. Indeed, although your neighbor has managed to obtain a favorable price for his house, this is due to many other factors than just its location.
In this regard, let’s say that it is much more relevant to perform a comparative analysis, which will take into account a sufficient number of factors for the comparison between two properties to be valid.
How to find out what your home is worth?
This one is the most asked questions, and the factors to be taken into consideration are:
- The area of the house;
- The type of property (single-family home, condo);
- The area of the land;
- The year of construction;
- The number of floors;
- The renovations carried out.
Analyze The Market Value of Your Home Based on its Sentimental Value
When we spend many years living in a house, it is normal to have a certain sentimental value in our eyes, especially if many important events have taken place there. However, the value that this house has to you can in no way constitute a valid way of fixing its sale price. Instead, you should rely on the elements we mentioned earlier.
Set The Selling Price According to Rhe one You Need
In order to buy your new home, you probably have a good idea of the price at which you should sell your home. Unfortunately, if you determine the price to sell your home based on how much profit you want to make, chances are you will be on the wrong track. As your evaluation will not be made on the basis of objective criteria, it is possible that your price will be too high. As a result, you will have great difficulty in finding a taker. This is certainly not an ideal situation!
Obviously, these times are too long for you to consider the established value as usable data. Indeed, many things may have changed during this time: renovations, a fluctuation in interest rates (in your favor or not), or the development or modernization of your city.
If you are looking to sell your property, contact us for a complete market evaluation of your home or book your FREE market appraisal today.