How do I get the best price for my property?


#1

The aim is to pay the right price for the home, and if you are selling, to get the best possible price with minimum stress. The key to all this is understanding the right price range to start.

Valuing any home is now within your complete control. In the past, one of the biggest reasons we thought we needed to use a real estate service was to ‘know the right price’ of a home. This is now not the case. Most banks have these services and there are loads of DIY home valuation websites which are easy to use and available free.

Additionally, real estate agents are only qualified to provide an ‘estimate’ and not a professional valuation. The only professional who is qualified to give you a legal valuation is a registered Property Valuer.

So use these resources to get as many comparisons as possible and if you are still in doubt as to how much your home is worth then contract a professional valuer to do a formal written valuation.


#2

@savoy Do you have any tips to add David


#3

You’re correct in what you say @Julie, agents aren’t qualified valuers. But they often know their areas better than a valuer will. I’d suggest if you can’t afford to engage a valuer, get the opinion of several local agents. It can be a time consuming process, but if you got 5 appraisals done, discard the highest and lowest and then average the three middle ones you’d be pretty close to the mark. Be aware that many of these “auto valuation” sites provided by banks (and others) can be a good estimate at times, at other times they are completely off the mark. For example, I am just working on an appraisal currently, and my estimate is “low 5’s”, a directly comparable (identical) property is on the market right next door for $510 - $530, and one os these “estimate sites” tells me it’s worth $600 - $699, just completely wrong.


#4

Great Insights, thanks David, I’ve experienced similar with some estimate sites. Always good to get a few different opinions from different avenues I’ve found.


#5

That’s great advice, David. It all comes down to doing your homework. I would still encourage people to consider a valuation as well as agent opinion as I understand the financial lenders ie banks, look to the register valuation when considering how much they will loan a potential buyer.


#6

Or if you’re a buyer and not sure on the price you can hire a buyer’s advocate who can provide an estimated buying range based on comparable sold properties. In my opinion though, if you’re a buyer or a seller and you want to know a price for a property you’re selling or you want to buy always get an expert. A computer generated valuation will lack accuracy and substance. It’s also very important that the properties you’re using as comparables are in fact similar. I also agree with you David that often values are often not aligned to the current market as they usually err on the side of caution.


#7

I am a property lawyer, conveyancer and licensed estate agent, so I am able to view this issue from a number of perspectives. It is rare that a property will sell above its current market value, no matter what ritual real estate incantations are used to get ‘the best price’.

This is because most people require bank finance to purchase and banks will not accept an over-priced property as security. Only fools or those who have special reasons for paying over the odds (e.g. I had a client who paid megabucks to buy the property he grew up in as a child and had the means to pay whatever it took) and there are not that many of either of these in the property market.

In my experience vendors are conditioned to expect less and to be pleased if they achieve current market value, or they expect more and are then conditioned down to current market value.

So, at the end of the day, the ‘best price’ is what a purchaser will pay and a vendor will accept - the same definition as ‘current market value’.

Peter Mericka
Lawyers Conveyancing