Picture this; you've decided to sell your car. For anyone savvy enough the first thing to be done is to do a bit of research into what it could be worth to you. You've got to be sure that you can get back at least some of the money you spent on buying it. On the other hand, you almost certainly want to price competitively to give yourself the best chance of selling it.
Now let's say that the car is just a few years old and has got a few kilometres on the clock. But on the upside, it's in good condition. And because we're talking about a significant financial sum, doing a bit of comparison shopping makes perfect sense, don't you think?
Someone selling a car and wanting to get an idea of it's worth is almost certainly going to start by looking to local car dealerships to see what the latest model is selling for since they bought. It's also a good idea to see exactly what you get for your money when buying a new model, usually there are new features added. Some of them will be cosmetic, but a bigger engine for instance commands a higher price. Then of course there's the used car market in newspaper classifieds. This is the place to see exactly how the make and model of the car you want to sell is fairing in the used car market. On-line car sites too, will give you an opportunity to check out a car from the inside and this gives you an even better idea of what you'll have to compete with.
So what's the point in all this? You should approach establishing a price for your property in the same way as you would if you were to sell your car. Yet, believe it or not few home owners ever give it much thought. And that's a real pity, because so much is riding on it. When overpriced properties sit on the market it there's often a greater financial burden that can push some home owners into real hardship. Then there's the stress and anxiety that goes hand in hand with that. As I said - so much is riding on it.
Pricing their property is one of the biggest mistake sellers make. Yes, many take notice of a neighbour's property when it sells, or hear what friends got when they sold the year before.
But there is a better way. Bear with me because I'm going to share with you my 3 part plan to pricing your For Sale property.
From the very moment you get an inkling that you'll be selling, you need to put this research plan into action. Because the longer you have to compare your property to those similar to yours, the better you're going to get at it.
More than that, the information you collect will be more objective. You'll be better able to trust your own judgement.
Part 1
A bit of leg work on your part is required. Head out to as many open homes in your neighbourhood as you can. Don't worry, you can just pose as a buyer, or if you don't want to, it's OK to 'fess up. It certainly doesn't hurt to tell agents what you're reason for inspecting is. Any Real estate agent worth his salts will be glad to help. Not only are they polite about it (with few exceptions in my experience), moreover, they would like to see more home owners like you doing their homework on property pricing. Having clients who are able to set realistic selling goals makes his job (and your selling experience) a much more pleasant one. It's also worth me pointing out to you that by and large agents like to have at least some traffic at an open house. Open Home's with no house hunters are liken to the store with no customers. It's not good for business no matter what way you look at it.
Part 2
Next, set out some basic criteria to compare your property to. If you're selling in an apartment or villa for example, this can be fairly straight forward in that often a couple of others have sold not too long before yours. There's also the added benefit of being able to compare almost identical layouts. Simply put, you're comparing oranges to oranges.
But what about comparing houses you ask?
Well, it's really the same concept. Let's reverse it for a moment. Take a moment and put you buyers cap on. If you were looking to buy a home, you'd go into it with the basic list of requirements and features that you need or want. For example; location, block size, number of b/rooms, condition, garage, aspect and of course the asking price. Now, keep all that in mind and change caps.
Here's another hint. When you return home from your comparison shopping, put your buyers cap back on. Then ask yourself this question. How does 'this property' compare with the properties I've just seen? Notice it's 'this property', instead of 'my house'? This means your assessment is less likely to be based on the facts, not your emotional connection to it.
Part 3
Follow up on what these properties sell for. These kinds of reports can be obtained for a small fee or you can just ask the selling agent directly. It's not classified information.
With practice it wouldn't take too long to get the hang of seeing what makes for good value amongst the kinds properties that are most like yours, and what buyers are actually prepared to pay for them.
Ironically you could just find yourself so good at evaluating a home's market value, within your market, that you end up having more of an idea than a real estate agent.
Sure, agents have a greater understanding of the property market in general, because they get to sell a variety of homes. But they only get so many opportunities to sell a certain type of home at any one time. With practice you'll soon become an expert in homes that are similar to yours.
Donna Ross in an Australian based Home Staging and property expert. Her home staging company Great Impressions helps home owners on the NSW, Central Coast, Lake Macquirie and Newcastle areas, enhance their home's best features to sell faster an at top dollar.
Along with running her Home Staging company, Donna is also studying a Diploma in Interior Design with the Interior Design institute in Sydney, Australia.
Article Source: http://EzineArticles.com/2154461
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