An inflated asking price could mean your house or unit doesn’t sell. Peter Koulizos Tells.
Nathan Mawby How to avoid this potentially costly trap.
When it comes to property, price tends to be a big deal – and not just for the buyers. It should be little surprise that the price you set can affect how popular your home is with the buying public.
Property expert and author Peter Koulizos, said getting it wrong could cost vendors – no matter the price bracket. “One of the reasons property will stay on the market for such a long time is that the asking price is too high”, Mr Koulizos warned.
“Having an asking price that is too high is generally due to one or both of the following reasons. Either the real estate agent has inflated the price of the property so that they could get the listing and/or the owner is being greedy and wants too much.”
This could become a cycle if the homeseller was at fault, he noted. If the owner is not willing to reduce their asking price, a different real estate agent makes no difference and they end up with the same result: no sale,” he said.
But this was an avoidable mistake if you had a good idea of what your property was worth before you listed it for sale, Mr Koulizos said. “The first step is to find out what other comparable properties have sold for, ” he advised.
This meant looking for sales where the home had a similar location, block size and a building with a similar size and condition. You should aim to look at homes sold in the same suburb, but if there were limited sales to look at, a neighbouring suburb where the streetscape and housing stock was similar to your own would help provide some insights, he said.
For houses, homesellers should look for something on an equivalent block size. For units, look for ones that are in a similar sized group – if yours was in a block of three, you wouldn’t compare it to an apartment among 300 others, Mr Koulizos said.
“(While) the number of living areas and bathrooms is important, the number of bedrooms is the key component when comparing the size of a building,” he added. The last step was to be honest about how new your home was, and how new various parts of it were.
“For example, brand new properties should be compared to other brand new properties and unrenovated properties should be compared to properties that need renovation,” Mr Kouizos said.
Edited article. Original source: Knox Leader Tuesday May 16th 2017