Is The Price Right?

Wayne Heldt, Acton Mount Lawley

It’s only natural… we want to be told what we want to hear.

 

Many real estate agents struggle with the notion that if they are honest about what they think a property is worth they will miss out on the listing to another agent who gives the owner an inflated figure more in line with that they want to hear. It’s a sad reality of what has otherwise become a very transparent industry over the last few years.

Estimating the likely sale price of a property isn’t a science but with near unlimited data at our disposal about what comparable homes have sold for, have not sold for and continue to be asking for on the market, it’s a lot more ‘science’ than it is ‘feeling, optimism and puffery’. Though, to an extent emotion can play a part for some purchases.

REIWA tells us that on average, homes in Perth sell for 7% less than their asking price and on average they take about 70 days to do so. So potentially, the $900,000 that your agent “felt” really “positive” about turns out out to be $837,000 after two and half months of frantic Friday night cleaning sessions for what seem to be endless Home Opens.

We all want to sell our homes for the highest possible price but asking for more rarely results in getting more. In most cases, after an extended time on the market, you’re likely to sell for less than you would have done if your home was priced correctly to begin with.

When you speak to an agent about the likely value of your home, always ensure they can support their number with real life facts and figures… or get ready for all those Friday night cleaning sessions.

WH.

 

 

Wayne Heldt

Average Days On Market ( past 12 months ) – 29

Average % Difference between asking price and sale price ( past 12 months ) – 1%

 

One Response to “Is The Price Right?”

Leave a Reply

Your email address will not be published. Required fields are marked *