Pricing Strategy

Deciding on the right price and pricing strategy

Getting the best possible price for your property and selling it sooner rather than later is no doubt the result you want. No matter which selling strategy you use, you will need to consider both your pricing strategy (marketing with a price, price range or no price) and your price expectations.

These decisions will be dependent upon your individual circumstances including your property type and location, and your time frame for the sale. It is very important to have a realistic price expectation for your property – a price based on the market rather than your needs.

Don’t confuse how much money you need with how much the market will pay. You and your agent will discuss your expectations in detail. Here are some thoughts that will help you to be realistic and objective when determining your price.

Step outside yourself for a moment and see your home or property through the eyes of potential buyers. How does it compare with other properties in your area that have sold recently, or are currently for sale?

There are a number of factors that will affect the value of your property and the eventual sale price, apart from its physical features. You should consider these when discussing your sale price and/or reserve with your agent.

1. Recent sale prices of similar properties in your area.

Look in the local papers, attend some auctions, ask your agent and conduct a search on the web.

2. Similar properties currently for sale in your area.

If yours is the only four bedroom home or two bedroom unit for sale in the area at the time, you can expect competitive offers and a healthy return. If there are other properties like yours, you may need to consider how to make yours more appealing.

3. The strength of your marketing campaign.

The more buyers you can attract to your home, the more chance there is of creating competition and achieving a higher price. Your agent will have ideas for a comprehensive marketing campaign for your home including signboards, internet, direct mail and local advertising. Your agent should also have a comprehensive buyer database, be highly active and have a good reputation in the area. Your individual marketing campaign will be designed to promote your property to the market and will be based on your individual requirements.

4. Type of buyer/reason for purchase.

First home buyers or young married couples may not be able to afford as much as well established second home buyers. Investors will be looking for a certain price point from which they can make good returns and are less likely to be emotionally involved in the purchase. Again, developers may have deeper pockets than those seeking a home to live in, but will also be wary of the purchase price as they will have a focus on redevelopment costs and resale values.

5. Personal.

It is important to note that an individual’s personal desire to own a particular property will impact on the price they are prepared to pay for it.

The impact of these issues should be discussed with your local Ray White agent, who has experience in the needs of different buyers, understands your marketplace and can give you a list of recent comparable sales. It’s important that you remain in control, so do your own research and begin to form your own opinion of market demand and the value of your property. Once you have an idea, you can call in an agent for further discussion. You will soon become aware of those agents who try to ‘buy your listing’ by promising unrealistic market prices.

An agent should show some recent comparable sales in the area to back up their opinions. Your local Ray White agent will know exactly how your home compares in terms of location, style, condition and age, size, living features and inclusions, with others in your area. Your Ray White agent will aim to sell your property at a premium price based on current market demand.