Price your house to meet market demand
You’ve made the decision to move. You want to start looking for a new home but how much you can spend depends on how much you make on the sale of your current home. So how do you set the sales price?
Setting a realistic price for your property is one of the most critical factors influencing the sale. It goes without saying you want to make as much profit as possible, but ask for too much and it won’t sell—and the longer your house is on the market, the more difficult it is to sell. That’s where a reliable real estate agent is invaluable.
Factors affecting sales price
Pricing a house relies on a number of factors, not least of which are prevailing market conditions. To attract potential buyers, you need to meet demand. In recent years the real estate market has been somewhat volatile with house prices rising and falling quite dramatically. At Elanora Realty, we specialise in selling properties on the southern end of the Gold Coast—from Burleigh Heads to Palm Beach— so we understand the local market.
The first thing we do when developing a pricing strategy is research. As an REIQ licensed real estate agency we have access to professional reporting tools, unavailable to the general public. This allows us to perform thorough, up-to-date research of the real estate values in your local area. We undertake a comparative market analysis (CMA) of your local area. This includes looking at homes similar to yours that have come up for sale over the past few months. Our analysis also considers recent residential sales as well as houses that were put up for sale but were subsequently withdrawn, unsold. Taking into account the age of the house, size of the land and condition of the property we can see how your house compares.
In addition to a comparative market analysis, we take a variety of other factors into account before determining what your property value:
- How fast are houses selling in your area?
- Are interest rates high or low?
- Are the local facilities and amenities desirable?
- Is it a buyer or sellers market?
By understanding local demand and considering prospective buyers as well as the type and style of your home, we can calculate a price compliant with the local real estate market. This also determines our pricing strategy. A pricing strategy done properly will encourage buyer interest and maximise profitability. We generally recommend marketing your property at a specific list price, at offers above a certain figure or we set a price range.
These are just a few ways we can determine the value of your property, if you would like to know more about how to maximise the profitability of your house sale — download our free property sellers guide or arrange a free home appraisal.