How to determine the asking price when selling

How do we come up with the right asking price? This is one of the most commonly asked questions we hear from potential sellers, which is completely understandable given they are considering us to sell what is likely to be the greatest financial asset they own.

The agent who tells you the highest price isn’t necessarily the best. Unfortunately, some will tell you what you want to hear just to get you in and then suggest a price reduction soon thereafter due to lack of interest. The fact is, nothing will damage the integrity of a sale faster than a property that is unrealistically priced.

The process of accurate pricing begins with a realistic marketplace appraisal.

That’s why a property appraisal conducted by a licensed real estate agent is an important first step when thinking about selling your home or investment property. It is different to a property valuation, which doesn’t take into account the current state of the market and recent comparable sales.

A property appraisal from us is accurate, reliable, detailed and costs nothing but around 30 minutes of your time. We will meet with you at your property and conduct a thorough inspection inside and out, paying close attention to every detail, including the hidden value in your property, things an online valuation tool will never be able to pick up on, making them unreliable.

After conducting and compiling extensive research on your property, local planning schemes and recent comparable sales, we will provide you with a comprehensive written report. The property appraisal method we adopt ensures that the value placed on your property is both accurate and in line with current trends in the local marketplace.

Here are the 5 key factors that need to be considered when setting the asking price:

1. Location

Location is everything in real estate. You can have the same size and standard of home in two different suburbs with one attracting a much higher asking price than the other simply due to its location. Location considers things like convenience to amenities, green open spaces, how quiet the street is, views and distance from things like waterways, restaurants, recreational attractions etc.

2. Land value

Most of the value of your property is tied up in the land on which your home sits. Two key factors play an integral role in determining your land value: location (the suburb) and the size and position of your land.

3. Market Conditions

Market conditions play a major role in determining the market value of your property. This is different to a property valuation because it factors in current comparable sales reflecting how much the market is prepared to pay at a given point in time. When the market is slow, the market value would be less than in a strong market.

Currently, WA is in the middle of a property boom. Homes are selling quickly and at higher-than-expected prices, with 15 per cent price growth expected to be achieved in WA during the 2021 calendar year.

4. Property Characteristics

Your agent will factor the characteristics of your property when determining the asking price. This includes things like the age of your home, the number of bedrooms, bathrooms, secure car spaces and living spaces, whether you have a pool, air conditioning, solar panels and the quality of your fittings and finishes etc.

5. Renovations & improvements

Renovated bathrooms and kitchens in older homes can really lift the value of a home, as can things like new flooring, window treatments and lighting. Before you embark on any renovations however, it is a good idea to speak to an agent if you are renovating to sell, to ensure you focus on the right things and don’t overcapitalise. Ask us and we will give you our honest and experienced opinion and advice on this.

6. Can you rely on online valuations?

Many Sellers start by searching online portals and do an ‘online appraisal’ to determine the value of their property. These can be a starting point but unfortunately as they are based on a mathematical algorithm, not a physical inspection, cannot take into consideration significant factors which affect the value of the property. Some of these include the extent & quality of renovations, position in the suburb (e.g., busy road vs quiet road) views, river frontage, condition of the home, size of rooms/bedrooms or whether there are significant outdoor improvements like a pool, substantial alfresco area or outdoor kitchen. These can only be factored in by a Real Estate Agent or Valuer who is aware of these things and how they add value to the property.

At Shelmark, we take pricing a property very seriously. Ask us for an obligation free property appraisal by calling: