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.