When and if the property boom ends, many sellers think the key to a successful sale is to wait it out and the boom will eventually return.
But if the market suffers any sort of a decline in price, the worst thing a seller can do is ride the market down. The key to a successful sale is accurate pricing.
Many suburbs in the Geelong market are still performing very strongly and may continue to rise in 2022.
If you pragmatically assess the current market price for your property and price at the market price, you are likely to sell for more in less time than if you are overpriced and waiting.
Buyers don’t disappear when a boom ends. They are often waiting for better value to emerge before they enter the bidding.
Just as buyers should be wary about believing an agent’s low-price guide at the open inspection, vendors coming to market should be very careful about selecting an agent that promises an extraordinarily high selling price.
If you price aggressively above the current market price, the best buyers are likely to shun your property. If the market in your area is performing strongly, accurate pricing ensures that you maximise the number of bidders for your home.
The more buyers that enter the bidding, the more likely you will see upward pressure on your selling price.
Pricing accurately is not to be confused with underquoting. Underquoting is where the price guide is knowingly set at below market in order to dupe hopeful buyers into bidding.
Whilst the tactic is unethical, it can also backfire on the agent and the vendor if a low-price guide becomes fixed in the buyers mind about the subject property.
You don’t need to promote your property below market price to attract sufficient buyer competition. Just price accurately and the buyers will come.
Written by Peter O’Malley
Kardinia Property is a family-based real estate business located in the Newtown end of Pakington Street, Geelong (above Butter & Co).