When it comes to selling your home- and working out what price you can realistically expect to sell it for- there are several factors that come into play. In order to determine the market price for your property before listing it, here’s what you need to consider:
Type Of Property
The type of property being sold makes a considerable difference in value. Yes, we’ve all heard that it’s “location, location, location”, but two properties for sale on the same block can command a different price based upon what type of property is actually being sold. For example, a newer property generally fetches a higher price than an older one- even if the older one has a size advantage. A freestanding home also (generally speaking) attracts a higher asking price than a townhouse or unit, due to the land value of freestanding homes. The property size and interior amenities also factor in here.
The current market situation also plays a part in determining what you can expect to make. So, after taking a look at the state of the current market, you may decide to hold off on selling. Remember that in a buyers’ market there are more properties for sale, which gives you less power in terms of expected selling price, while in a sellers’ market there are fewer properties listed and the law of supply and demand works in your favour. This is where an agent helps you to consider the current climate before making a decision.
In the simplest terms possible: An increase in lender interest rates puts more pressure on mortgage repayments, which raises the bar to qualify potential buyers for a loan. Conversely, lower interest rates open up the market and create more demand for properties like yours- which again sees the law of supply and demand work in your favour. Many people overlook current interest rates before they decide to list their property, but taking the time to check this costs nothing and is worth surveying.
The Local Area Data
Local data on your suburb and the market is helpful in giving you a better idea of a realistic property price. Take a look at the sales prices for recent listings in your area, age of the properties and land costs. Other factors like proximity to parks, shops, schools, hospitals or public transport can also make a difference. A house closer to amenities like these can fetch more for sale than a house that’s just a few minutes’ drive further away, even if they’re in the same suburb. Getting a hold of this data helps you to make a more informed decision either way, whether you sell or hold off.
Property Valuation Report
A real estate agent can help you to work out the market value of your property by getting an independent accessor on board for your home. A licensed valuer takes everything into consideration from land value of similar properties in your area, to market conditions, to suburb size, to property size to the quality of the build. A report like this enables you to make a good decision when it comes to the selling price.
In A Nutshell:
Although it helps to do the homework yourself, working with a reliable agent to help you determine the price of your property is the best step you can take. Here at Shields Gillman, we commit to getting the best price for every vendor we take on and don’t settle merely for a sale. Instead, we operate by the underlying principle of quality over quantity when it comes to our listings.
To find out how we can help you get the price you deserve for your property, Contact Us