Mistakes made in a rising market always end the same way: a protracted marketing period, extra advertising costs, buyer caution and a weaker negotiating position. Here are the six most common to steer clear of.
1. Ignoring the research
First National Real Estate’s chief executive Ray Ellis said it is incumbent on all property owners to research comparable local sales prior to listing their property.
“That’s easy these days,” he said, “with so many websites freely offering recent sale prices,” he said.
2. Choosing the agent who simply provides the highest appraisal price
Mr Ellis said sellers should choose their agent carefully.
“[Find those who] are focused on helping customers bring their properties to market with realistic expectations and an appropriate pricing strategy.”
3. Making emotional decisions
Combine your research and current market analysis with that of your agent’s advice, says Mr Ellis, and it will lead to an accurate (and realistic) price expectation.
“From there, a complete marketing strategy can be tailored to suit," he said.
4. Pricing too high from the outset
Mr Ellis says Australian dwelling values have risen 0.5 per cent over the quarter and 7.5 per cent over the past 12 months.
And with stock levels remaining comparatively low, he said vendors may be tempted to be “less careful” with their pricing.
5. Overpricing because you are not in a hurry
Residential property prices and market conditions remain favourable as summer approaches, says Mr Ellis, but overpricing can lead to unnecessary losses due to extra days on the market and additional costs.
6. Chasing the market
Mr Ellis said the national average for the number of days it takes to sell a property fell from 50 days to 39 days in September.
This fall means that if your property stays on the market longer than the average, you could be pricing yourself beyond that of the trend.