What is the true Market Value?
In a nutshell, your property is worth exactly what John Buyer is prepared to pay for it at any given time. The best means of determining its value, is to market the property by initially advertising it as close to market value as possible. The recommended price can be calculated by taking an average figure from the C.M.A's prepared by the agent you interview.
Beware of exaggeration!
It is an unfortunate fact that the large majority of agents initially place an inflated price tag on a property when asked to give a valuation. 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 negotiator quoted you in the first place.
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 property is at its peak during initial market exposure, when these Buyers will compare your property with what they have already seen. They will only seriously consider a property which they feel compares favourably with their expectations of value and price.
REMEMBER GOOD MARKETING IS ESSENTIAL!
Advantages of Pricing Correctly
- Faster sale
- Creates good impression of good value
- Less inconvenience
- Maximum exposure during initial Marketing Time
- Exposure to more buyers
- Marketing period minimised
- Fewer showings
- Least disruption
- Increased advertising response
- Stimulates buyer interest
- Attracts higher offers
- More money less time
- Avoids being "shopworn"