Pricing Your Property Properly

How to determine the correct price for your property

Today I want to talk about property pricing.  There’s a statistic put out by REIWA that’s been really concerning me.  They call it “seller discounting”.  Over the last 3 months, 51% of sellers have reduced their asking price, and the average price reduction is 7.4%.  This means over half of all properties are overpriced when they are first listed.

I hear a lot of people say “we can always come down, but we can’t go up”.

The problem with that theory is that properties get the most interest when they are new to the market.  In fact, you will often get more internet views in the first month than the rest of the marketing period combined.  If you get the price wrong in the beginning, by the time you fix it, most people have already seen the listing and won’t notice the reduced price.  This means you’ve wasted that prime initial marketing period.

So what’s the solution?

  1. Make an appointment with a local agent who sells a lot of properties in your area.
  2. Ask them to show you the sales evidence, not just give you their opinion. Discuss how each of those sold properties compares to yours.
  3. Make the pricing decision together and set a price that both you and the agent are comfortable with. If it’s done right, you will get a good level of interest in a short period of time.  You should also end up with a result that’s fairly close to your asking price.

If you’d like to discuss the price of your property, give me a call on 0448 825 833 or email craig@cvcp.com.au

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Pricing Your Property Properly