Establishing your Property Value
What is the true Market Value?
In a nutshell, your property is worth exactly what John Buyer is prepared to
pay for it at any given time. The best means of determining its value, is to
market the property by initially advertising it as close to market value as
possible. The recommended price can be calculated by taking an average figure
from the C.M.A's prepared by the agent you interview.
Beware of exaggeration!
It is an unfortunate fact that the large majority of agents initially place
an inflated price tag on a property when asked to give a valuation. The reason
is simple. At his first meeting with you, the agent naturally wants to make
a good impression, and therefore tries to avoid disappointing you. So he tends
to price the property at a figure much larger than the market value, or unrealistically
higher than the amount that you paid originally. Also, there is a possibility
of some unscrupulous agent or agents inflating their valuation merely to obtain
a mandate. Then, after softening you up and conditioning you, they frequently
end up persuading you to accept an offer far lower than the honest and experienced
negotiator quoted you in the first place.
Establish the actual market value.
Once you and your agent have established a marketing price, an intensive marketing
campaign can be implemented. All things being equal, you can feel assured of
a sale at a reasonable price. Always remember there is a constant nucleus of
buyers in the market place ready and able to purchase. Their interest in your
property is at its peak during initial market exposure, when these Buyers will
compare your property with what they have already seen. They will only seriously
consider a property which they feel compares favourably with their expectations
of value and price.
REMEMBER GOOD MARKETING IS ESSENTIAL!
Advantages of Pricing Correctly
- Faster sale
- Creates good impression of good value
- Less inconvenience
- Maximum exposure during initial Marketing Time
- Exposure to more buyers
- Marketing period minimised
- Fewer showings
- Least disruption
- Increased advertising response
- Stimulates buyer interest
- Attracts higher offers
- More money less time
- Avoids being "shopworn"
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