Pricing your property correctly to attract more buyers to your open homes
If you missed our introduction on how to sell your home for the highest price and in the fastest amount of time, we recommend reading it here first. Whether you’re selling with an agent or using technology to sell your home yourself through Airlisting or a similar platform, the same principles apply.
To achieve your goal of selling real estate, the first step towards a successful sale is to price your property correctly. To accomplish this, it’s important to understand the actual value of your real estate in today’s market and choose a list price that’s appropriate.
By pricing your property correctly, you heighten your chance of welcoming more buyers through the door on the day of your open home, which ultimately leads to an increase in buyer interest and potential offers on your home. Overprice your property or list without a list price and you may compromise reaching a sale of your home at the highest possible price and in the fastest possible time.
Let’s look into the practice of overpricing your property.
Whether you genuinely believe your property is worth a higher amount or you’re overcompensating for possible price negotiations, you’re never going to sell your home if no one walks through your front door on the day of your open home.
Why? Because of the basic fundamentals of supply and demand.
There is higher demand for your real estate during the first few weeks that your property is on the market than at any other time your property stays on the market due to the buyers who we call ‘active buyers’.
Airlisting works in partnership with Google and together we factually know that there is, on average, a 15-month timeframe from the moment a person initiates their dream to buy real estate to when they physically purchase real estate. During the final few weeks of this period, these people are known as your active buyers.
They’ve been on their real estate journey for some time. They’re aware of their search criteria. They know the exact home they’re looking for. They may have missed out on several properties already. They may even have finance pre-approval. They’ve probably set up notifications on realestate.com.au and domain.com.au so they’re immediately notified when new properties that meet their criteria are listed.
Active buyers are your best buyers. They’re low risk, they know what they want, and they’re ready to purchase the moment the perfect home hits the market. You want these buyers to be at your first or second open home, if not a private inspection sooner.
When you have multiple active buyers at your first or second open home; congratulations, you’ve successfully created the real estate unicorn. That is, a situation where you receive multiple offers to set the snowball rolling into a bidding war for a slightly higher price or more idealistic contract conditions to suit your circumstances as a seller.
These active buyers are fantastic however you won’t attract them to your open home if you overprice your property. These buyers are so busy attending eight open homes on a Saturday that they’re likely going to skip yours if your property is considered overpriced.
The second pricing practice that can lead to the sound of crickets on the day of your open home is listing without a list price.
This is a common practice led by agents with a premise that listing without a list price leads to higher enquiry; and, we can assure that buyers absolutely loathe it. Whilst the seller may gain higher online enquiry in the form of every person who emails requesting a figure of what the seller is expecting to achieve in terms of price, you’re doing no favours for the active buyers who are ready to pounce on the next perfect opportunity. They’re not going to waste their time on a seller who has no clarity on what price they’re hoping to achieve.
Okay, so this is all great in theory, but as a seller you’re probably wondering what you should do to maximise the attendance at your open homes and achieve the highest possible price in the fastest possible time. As we mentioned earlier, it all boils down to understanding the value of your real estate in today’s market, and that value can be determined depending on the type of property you’re selling.
If you’re selling an apartment within a large complex of similar apartments, determining the value of your property is relatively simple. Research the sold price for comparable apartments in the complex (not the list price – on average in Australia there’s a 6% difference) and you’ll be able to work out what your apartment may sell for depending on features, layouts, included car parking spaces etc. The same process can be followed for townhouses.
If you’re selling a recently renovated home on an established street or an architectural masterpiece with custom features, the only way to know your property’s true value is to request a pre-sale market valuation from a registered independent valuer who has nothing to gain from the sale of your property.
Airlisting offers sellers the option to order an independent pre-sale market valuation performed by a Certified Practicing Value via a few clicks of a mouse. Within days of the valuer’s inspection, you’ll be armed with the relevant information to choose an appropriate list price for your property, including whether your property is in a rising market (seller’s market) or a declining market (buyer’s market), which is useful information to know.
Follow our best practice steps to pricing your property based on its actual value in today’s market and you’ll align your property with the right buyers who will offer the highest possible price and in the fastest possible time. Stay tuned as we continue to share our fact-based insight to guide you through a successful real estate campaign over the coming weeks.
Whether you’re selling with an agent or using technology to sell your home yourself through Airlisting or a similar platform, staying informed enables you the power to achieve a great outcome. Sign up to the Airlisting mailing list or follow us on our social platforms for more information, including our next feature; How To Sell Your Home For The Highest Price And In The Fastest Amount Of Time – Presentation.