How to set a price for your home

Setting a price is one of the most important decisions vendors have to make when selling their home. It’s also one of the most complex.


With a constantly shifting market and substantial sums of money at play, setting a price can tricky. Sellers have two basic choices; work with a reputable, local real estate agent to set a price or pay an independent valuer.


Sellers often price their own homes based on what they need to repay debts or buy a new house. In real terms, that sort of price bears no relation to the home’s actual market value. It is irrelevant what a Seller wants. The market doesn't care. The sale price is always determined by the market and if an offer does come across the table within 4-6 week maximum, then it merely is a pricing issue. Sadly, that’s just not how it works.


Sellers often also compare their home to nearby properties to come up with a price, but unavoidable personal bias often can creep in. Of course when it’s your house, you’re going to think yours is better, more valuable. It’s difficult for vendors to be impartial.


To ascertain an independent value is harder than it seems, though. Usually, most people get two or three real estate agents to come in, looking for three valuations on their home, but in reality, what they’re getting is three pitches for business! What this means is Sellers can be led up the garden path by inflated valuations which may not accurately reflect the market.


I say beware of the agent with the highest valuation because that would not necessarily the best choice. Too many times I've seen an exuberant valuation to get the Seller to sign up only to have to drop the price to a realistic figure or not even sell at all. In those cases, the Seller will always say the market was"bad" when in fact it was merely the market saying "your price was bad!".



A reputable agent, with experience in the local area, will work with a vendor to arrive at a reasonable price, understanding all the relevant market forces and current trends. The agent’s job is do their research and understand the local market, and also understand the sellers’ expectations, to reach a price that is reasonable, with a willing seller and willing buyer, in a reasonable amount of time.


In the current market of uncertainty, Sellers must listen to their trusted agent because there are only two possibilities if they go to the market. They are either "Selling" or "Staying". However, you have been warned......this is not the time nor the market to "test the market". It is simply is fraught with disappointment, stress, cost and may cause you to achieve an even lower price!


For just a few hundred dollars, Sellers can also get a sworn valuation from a qualified valuer, but you can save your money if you work with the agent that you TRUST the most.


If you require an idea of what your property is worth and would like a hassle-free property consultation about your property sale, then let me enlighten you with the right advice the first time. Just drop me a line on 0412 427 877 or email claude@edisonproperty.com.au

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