Welcome back to our ultimate guide for first-time home sellers.
We’ve answered all the important questions you may have before selling your home.
You can read Part I here!
How much is my home worth?
Your home’s worth depends on several things: the land value, home improvements and renovations, the location, the real estate market, as well as recent sales of similar properties and property characteristics.
However, it is crucial to keep in mind that your home’s worth will be as much as someone is willing to pay for it. When setting a price for your home, you look at all the data available, but if it’s not selling, you might need to adjust this price down the track.
Your Ray White agent, with their local market knowledge, is the best person to ask about how much your home is worth.
What is a property appraisal?
Property appraisals are given by licensed real estate agents, as they specialise in answering the ‘how much is my home worth’ question.
They do it by running a comparative market analysis which involves finding similar properties that sold within the last 90 days. The closer they can match your property to others sold in the area, the more accurate the appraisal will be. Agents also consider current competition, broader market trends, the properties’ structure and condition.
Property appraisals are an excellent way of understanding your properties potential market value at that specific point in time.
What is a property valuation?
A property valuation is a calculated figure conducted by a qualified valuer. It is often required when a definitive value is needed, for example, when applying for a bank or home loan lender, or when establishing the value of a deceased estate. It will cost money to get.
Valuing is a complex task. It takes into account the location of the property, the features of the home, the building structure and condition, the local council zoning, as well as caveats and encumbrances on the property and any building faults.
Property valuations are generally on the lower side and don’t take into consideration the emotion of a buyer – what they would be willing to pay if they fall in love with your property.
What is the difference between property appraisal and property valuation?
A professional valuer may provide you with a figure that does not reflect an individual’s interest in the home and is merely based on market analysis. This could mean a lower value figure, which could, in turn, lead you to underprice your home.
An agent appraisal is informal and can differ between real estate agents. The figure an agent provides will reflect how much they think you could obtain if you were to list your property with them.
Always be careful when using online tools and resources to value your home, as they might not use the latest data. The risk is to overprice or underprice your home for sale. That is why it is always better to talk to a professional, such as you Ray White local real estate agent.
Why is it essential to get the price right from the start?
It is crucial to get the price right when you first advertised your home, as this is when most people will be looking at your listing. Getting the price right from the start will limit the risks of missing out on opportunities or not achieving the best possible outcome.
Price your home too high, and it may end up staying on the market for a long time. When a property remains on the market for more than 60 days, it can end up getting stigmatized. Buyers may start to think that something is wrong with the property, which may force the vendor to reduce the price considerably to sell it.
On the other hand, if your price your property below market value in an attempt to create interest and generate multiple bids, it may result in buyers assuming your home is only worth its listing price. Not only you won’t achieve the price you want, but this practice is also illegal in some states.
The best plan to sell your property is to know how much your home is worth, and then talk to your agent regularly during your marketing campaign.
How should I price my home?
Your real estate agent is the best person to advise you on how to price your property. If you are selling by private treaty, carefully consider the property appraisal the agent has given you, review local market reports and any recent sales of similar properties. Talking to your agent about this is key.
If you are selling via auction, make sure you communicate with your agent regularly throughout the marketing campaign. They will be able to gauge the market throughout the sales campaign. The open for inspections, number of contracts out and the price point the market believes your property to be at will help you set your reserve price before auction day.
What is a real estate agent commission?
A commission is a fee paid to a real estate agent for selling your property. In other words, commissions are the agents’ reward for a successful result. So no sale for you also means no commission paid to the agent. The agency agreement will detail the percentage of commission to be paid to the real estate agent if your property sells.
What are the standard costs when selling a home?
When selling your home, you will need to make sure that you are aware of the following costs:
How long does an agency agreement last?
Usually, an agency agreement lasts 120 days. If you’re happy with agent or haven’t sold you can stay with that agent.
Talk to us about your plans and let us help you grow wealth for you and your family through selling property.