Importance of Pricing

This graph illustrates the importance of pricing correctly. The centerline

represents market value. As you move above this market value, you attract

much smaller percentage of prospective buyers, greatly reducing your

chances of a sale. Conversely, as you move below market value, you attract

a much larger percentage of potential buyers.

When setting a price for your property, the listing level

must strike a balance between the seller’s need to

achieve the best-possible return and the buyer’s need

to get good value. With many years of experience, a

professional Real Estate Agent can help you set a price

that will accomplish both objectives.

Establishing market value

The market value of your property is determined in

exactly the same way as any other commodity – what

a buyer is willing to pay for it in today’s market.

Despite the price you paid originally, or the value of

any improvements you may have made, the value is

determined by market forces.

Look at the competition

Buyers look at about a dozen properties on average

before making an offer on a property. As a result, they

have a good overview of the market and will compare

your property against the competition. If it’s not in line

with similar properties that are available, buyers won’t

consider it good value for money.