Property Valuation - 3 Steps To Set Your Property Value
This is the most important question you need to answer when delivering a private home sale. Establishing the correct property value is crucial to your property sale. Set your property value too low and be assured of a fast sale however you could short change yourself of tens of thousands of dollars.
At the opposite end of the spectrum, position your property value too high and you will miss opportunities to sell to potential buyers who would have bought at correct market value, plus there will be a good chance your property will remain on the market and go stale.
This can have a flow on effect deflating your confidence and leaving you vulnerable to not selling at all or becoming desperate and begin to field ridiculous offers or list with an agent who will sell at market value or below, for which you pay their commission.
The number one priority is to research the market and incorporate the expertise of a professional property valuer. We recommend a simplistic three step process.
1. Conduct a simple, structured research sample of the property market and view 4 to 5 open properties with comparative features to yours. Consider what features these properties are presenting and compare them to your property. Take into account special attributes like location, views and proximity to services.
Our Property Valuation Matrix tool will greatly assist in setting your property value.
2. To assist your field research, attain an online property report from one of the select companies that we present on our website. Their reports offer valuable information including recent local sales, land size, number of bedrooms, sales trends and suburb demographic information including rental information. This data delivers powerful information to determine your property value. Your research will also provide solid knowledge when negotiating with buyers. These websites may be useful to in your research in establising your home value.
My RP Data
3. We believe it is imperative you attain professional advice and secure the services of a Certified Property Valuer. Property Valuers have normally completed formal study and carry professional qualifications. They will have extensive experience, are independent, should be impartial and are well versed in property sales and trends. A property valuation can range from two hundred to three hundred dollars. Secure this service through your bank to acquire a professional property valuation at a reduced rate.
When you source a property valuer ensure they are independent and un-aligned with a Real Estate Agency. You don’t want a conflict of interest. Selling My House Trades and Services section offer access to Property Valuers in most regions. Once you’ve registered your details simply log into the trades and services section and conduct a search.
The above strategy will take little time and effort to achieve an extraordinary understanding of your property value and where it is priced in the market. By adopting the above three steps you will be able to successfully position your property value bang-on to the market. To offer a bit of room in negotiating the sale you may want to position your property value a few percentage points above the market value, which offers room to negotiate with a buyer. Keep in mind this strategy has to be considered only when the market is a seller’s market.
“The number one priority is to
research the market plus
source a professional property valuation”
In a buyer’s market consider positioning your property value at the lower end of the above percentages and be prepared to go a few percentage points under market value to secure the sale. With this in mind remember you are still leaps and bounds ahead because you are not paying large sales commissions to agents to do exactly what you are capable of doing.
Using your Property Sellers Planner (available in Sellers Manual Pro) insert the time estimate to set your property value. This exercise delivers structure and goals in organising your home sale plus delivers an estimate on what hourly rate you’re rewarding yourself when you sell house. ( ‘What’s Your Hourly Rate’ calculator – Tools & Resources). The above three steps are straight forward and will be well worth the allotted time to position your property value to that of the market. In addition, you access valuable market research and gain confidence in negotiating with buyers because you’ve taken a small token of time to understand the market.