Setting a Price on Your Home

The first two weeks are critical to achieving the best price.

When it comes to selling their home, many people initially ask for more than what they are prepared to accept. They do this so that the price can be reduced later if necessary.

As the owner, you are of course entitled to ask whatever price you like but the idea of starting high to give you and prospective buyers room for negotiation should be handled very carefully.

Overpricing can scare off potential buyers who generally know their price limitations and the amount of loan finance they qualify for.

If your asking price is beyond their means they may cross your property off their list without even looking at it, not realising that you might be willing to accept a lower offer to meet their finance ceiling.

Before setting your price, look at the competition. Buyers do. They inspect many houses and eliminate those they consider too costly. Put yourself in their shoes. Would you purchase your property if you could buy a similar or better residence for less?

Remember too, that most buyers have to raise a loan to purchase a home. Lending institutions usually require a valuation to ensure the property is being purchased at a fair market value.

You should also take into account the 'hidden' cost of  a slow selling property. While you wait for a buyer you will go on being liable for rates and taxes, insurance, maintenance and interest payments on your loan.

You might get your price in the end but when the hidden costs are deducted, you may find that you have not done as well as you might, had you priced realistically in the first place.

While your property languishes on the market, its high price will make competing properties seem more reasonable. You will be helping sell them.

When deciding on your sale price, remember that competitively priced properties attract qualified buyers much more quickly.