Establishing your property value.
What is the true Market Value of your property? In a nutshell, your property is worth exactly what a willing and able Buyer is prepared to pay for it at any given time, and there are many factors which play a role in establishing value.
Despite what many think, the best means of determining its value, is to market the property by initially advertising it as close to market value as possible. The thinking that you can put it on the market at an inflated price and haggle doesn't work - in most cases the property will sell for below market value if you try this route.
The recommended price can be calculated by taking an average figure from the C.M.A's (Comparative Marketing Analysis)
prepared by the estate agent you interview and select.
Beware of price exaggeration. It is an unfortunate fact that many estate agents initially place an inflated price tag on a property when asked to give a valuation or "evaluation". (This is one of the reasons we recommend you ask any estate agent you may be considering hiring to give you an up to date CMA)
The reason is simple. At his first meeting with you, the agent naturally wants to make a good impression, and therefore tries to avoid disappointing you. So he tends to price the property at a figure much larger than the market value, or unrealistically higher than the amount that you paid originally.
Also, there is a possibility of some unscrupulous agent or agents inflating their valuation merely to obtain a mandate. Then, after softening you up and conditioning you, they frequently end up persuading you to accept an offer far lower than the honest and experienced estate agent quoted you in the first place. Read more about this on the page "selecting the right agent"
Establish the actual market value.
Once you and your agent have established a marketing price, an intensive marketing campaign can be implemented.
All things being equal, you can feel assured of a sale at a reasonable price.
Always remember there is a constant nucleus of buyers in the market place ready and able to purchase. Their interest in your prop- erty is at its peak during initial market exposure, when these Buyers will compare your property with what they have already seen.
Buyers buy by comparison, and they will only seriously consider a property which they feel compares favourably with their expec- tations of value and price.
CMA: How a CMA can help a Seller?
In our modern online world Sellers and Buyers of real estate have far more access to comparative prices, reviews and Information when trying to sell something.
For those wishing to hunt for motor cars there are a myriad of sites where you can get a treaty good idea of the going rates and prices for used motor cars or even motorbikes. For the likes of electronic goods there are loads of auction type site (Bid or Buy, EBay etc) which list what various items go for and are offered at.
Houses aren't quite the same because what most people (and most particularly Sellers) see is "Listing Price", a very different animal to Selling Price unfortunately!
That's why it's advisable for Property Sellers to get an accurate (and detailed) Comparative Market Analysis, (referred to as a "CMA")
from an established local estate agent who specializes in the suburb, estate, complex or area.
