Category: Tips and FAQ

Setting realistic price expectations

Post author By Chief
Post date November 11, 2024

Setting realistic price expectations when selling a home is crucial for attracting buyers, ensuring a quicker sale, and maximizing your return on investment. Pricing a home too high can lead to stagnation on the market, while pricing it too low can mean missing out on potential profit. Here’s how to determine a realistic price for your property:

1. Understand the Current Market Conditions

The first step in setting a realistic price is understanding whether you’re in a buyer’s market or a seller’s market:

Seller’s Market: When demand exceeds supply, you might have more flexibility in pricing. Homes tend to sell faster, and buyers may be more willing to meet your asking price or even bid higher.
Buyer’s Market: When there’s more supply than demand, pricing becomes more competitive. Buyers will have more options and may negotiate harder on price.
Balanced Market: There’s enough inventory for buyers to choose from, but not an overwhelming number of options. Homes tend to sell at fair market value, with little room for overpricing.

Your agent will be able to provide insight into the market conditions in your area.

2. Comparative Market Analysis (CMA)

One of the most important tools for determining a realistic price is a Comparative Market Analysis (CMA). This report compares your home to similar properties that have recently sold in your area. Your agent will look at factors like:

Recent Sales (Comps): Look at properties that are similar in size, style, age, and condition. Pay special attention to those that sold in the last 3 to 6 months.
Active Listings: Check how your home compares to similar properties currently on the market. This helps you understand what buyers will see when they search in your area.
Pending Listings: Homes that are under contract can give a good indication of current market demand and what buyers are willing to pay.

A CMA will give you a realistic range for your home’s price, taking into account what similar properties have actually sold for, not just what sellers are asking.

3. Consider Your Home’s Condition and Features

When setting a price, be honest about your home’s condition and how it stacks up against the competition. Consider these factors:

Upgrades & Renovations: Homes with recent improvements (kitchens, bathrooms, etc.) can typically command higher prices.
Curb Appeal & Interior Condition: Homes that are well-maintained both inside and out tend to fetch higher prices.
Unique Features: Special features (e.g., a pool, finished basement, smart home technology, or a prime location) can add value.
Home Inspection: Consider whether you need to make any repairs before listing. Minor repairs or cosmetic improvements (fresh paint, new carpet, etc.) can add value and allow you to price higher.

If your home is in need of significant repairs, consider how much this will impact the price. In some cases, pricing your home slightly lower to reflect necessary work can attract more buyers.

4. Account for Your Timeframe

Your desired timeline can influence your pricing strategy:

Quick Sale: If you need to sell quickly (e.g., due to a job transfer, financial reasons, etc.), you might want to price more competitively to attract more buyers.
Maximized Price: If you’re not in a rush to sell, you might be willing to test a higher price, knowing it could take longer to find the right buyer.

Keep in mind that homes that linger on the market for an extended period can develop a stigma, making them harder to sell down the line.

5. Evaluate the Local Economy and Trends

Local economic factors can influence home prices. Pay attention to:

Interest Rates: Higher interest rates may reduce buyer purchasing power, which can affect how much buyers are willing to pay for a home.
Economic Growth/Decline: Economic conditions in your city or region (job growth, new businesses, etc.) can impact demand and pricing.
Supply and Demand: Look at inventory levels in your area. A shortage of homes for sale (low inventory) will likely push prices up, while a surplus of homes (high inventory) could drive prices down.

6. Consider Your Emotional Attachment

As a seller, it’s natural to feel attached to your home, but emotional bias can cloud your judgment when setting the price. It’s important to be objective and base your price on facts and market data, rather than how much you feel your home is worth personally. A realistic price is one that reflects current market trends and comparable properties, not sentimental value.

7. Stay Flexible and Open to Adjusting

Even if you start with a solid pricing strategy, be open to adjusting your price if you aren’t receiving offers or feedback suggests it’s too high. It’s normal for sellers to adjust the listing price based on how the market reacts. If after a few weeks you’re not seeing interest, a price reduction might be necessary.

8. Consult with Your Agent

Your real estate agent is your best resource when it comes to setting a realistic price. They have access to the latest market data, understand the local trends, and can provide insight into what buyers are willing to pay for homes similar to yours. A skilled agent will help you price competitively to attract interest while still achieving your financial goals.

Common Pricing Mistakes to Avoid

Overpricing: Setting the price too high can lead to extended market time, fewer showings, and eventual price reductions that may harm your home’s perceived value.
Underpricing: While pricing lower might attract more interest, you risk leaving money on the table. You want to balance competitive pricing with fair market value.
Ignoring Market Trends: Not taking into account the current market conditions or pricing your home based on past trends can lead to unrealistic expectations.

Final Thoughts

Pricing your home realistically is about balancing your goals with market realities. By considering market conditions, a detailed CMA, your home’s condition, and the local economy, you can set a price that reflects the true value of your home while still attracting potential buyers. Working closely with an experienced real estate agent will help ensure that you get the best possible price within a reasonable timeframe.

Selling Tips and FAQ

When is the Best Time to Sell Your Property?

Post author By Rasmus Nielsen
Post date November 5, 2024

Deciding when to sell your property can be as crucial as the decision to sell itself. Timing can significantly influence your selling experience and the final sale price. However, the ideal selling time can vary depending on the type of property you have. Let’s break it down.

Family Homes: Timing is Key

If you’re selling a family home with features like a pool or a garden, timing your listing can make a big difference. The ideal time to list is during school term, such as February as families may be on holidays in January and therefore are unable to inspect homes. August and September is also a great time to list for sale as buyers have an urgency to be in by Christmas.
If your garden and outdoor is the main feature, consider listing for sale around September – October or towards the end of Summer being February – April. Be careful going to market too close to December as buyer activity decreases.

The Case for Villas and Apartments

On the other hand, if your property is a villa or an apartment with little to no garden, you have more flexibility. These types of properties can be listed for sale regardless of school holidays or seasons. Buyers of such properties may not have the same family-oriented concerns, making them open to purchasing at any time of year.

Investment Properties

A long lease reduces the buyer pool significantly, so the expiry date of the lease really makes a difference. Listing for sale 3-4 months prior to the lease expiring is ideal. However, in our experience a property that is staged and styled will increase the appeal and the sales price. Therefore, it is worth selling the investment property once the tenant has vacated.

Ultimately, the best time to sell your property depends on its type and your personal conditions. Whether you’re listing a family home or a villa, understanding the nuances of timing can lead to a smoother selling process and potentially a better sale price. So, assess your property type, keep an eye on local trends, and choose the right moment to make your move!

Free STaging when selling

What is your home worth? No access required

Get in touch

Tips and FAQ

Electric Investments That Add Value to Your Home

Post author By Rasmus Nielsen
Post date October 6, 2023

In today’s world, energy efficiency and sustainability have become more than just buzzwords; they are essential aspects of modern living. Homeowners are increasingly looking for ways to reduce their carbon footprint while simultaneously enhancing the value of their homes. This is where electric investments come into play, and they can make a significant impact on both your wallet and the environment. In this article, our home staging expert in Perth will explore some electric investments that can add substantial value to your home, including Tesla products, solar panels, EV chargers, and home batteries.

1. Solar Panels: Harnessing the Power of the Sun

Solar panels are a fantastic investment for homeowners who want to reduce their reliance on conventional energy sources and lower their electricity bills. These photovoltaic panels convert sunlight into electricity, which can be used to power your home. Not only do they provide sustainable energy, but they can also significantly increase the value of your property.

Solar panels not only reduce your monthly utility bills but can also generate excess electricity that can be sold back to the grid in many regions. This not only offsets your energy costs but can potentially generate additional income. Plus, solar panels are known to boost the resale value of a home. According to a study by the Lawrence Berkeley National Laboratory, homes equipped with solar panels tend to sell faster and at higher prices.

2. Tesla Powerwall: Storing Solar Energy for Later Use

While solar panels are an excellent source of clean energy during the day, what about when the sun isn’t shining? This is where the Tesla Powerwall comes in. This innovative home battery stores excess energy generated by your solar panels during the day and allows you to use it at night or during power outages.

The Tesla Powerwall not only provides energy security but also adds value to your home by making it more self-sufficient and resilient. Homebuyers increasingly appreciate homes that come equipped with backup power solutions, and the Powerwall can be a significant selling point.

3. EV Charger: Preparing for the Electric Vehicle Revolution

The electric vehicle (EV) revolution is well underway, and it’s essential for homeowners to be prepared. Installing an EV charger in your home is not only a convenient addition but also an investment that adds significant value to your property.

Tesla, a leader in electric vehicles, offers the Tesla Wall Connector for home charging. This high-powered charger can replenish your Tesla’s battery quickly, providing a full charge overnight. Having an EV charger in your home means you won’t have to rely solely on public charging stations, making EV ownership even more convenient.

Future homebuyers are likely to prioritize properties with EV charging infrastructure, as electric vehicles become increasingly common. So, installing a Tesla Wall Connector or any other EV charger can increase your home’s desirability and market value.

4. Battery for the Home: Security and Independence

Beyond the Tesla Powerwall, there are various other home battery solutions available that can add value to your property. These batteries provide backup power during outages and can optimize your energy usage, saving you money over time.

Having a home battery system demonstrates preparedness for unforeseen events and can attract buyers who prioritize energy resilience. It also allows you to take advantage of time-of-use electricity pricing, storing electricity when it’s cheaper and using it when rates are higher.

5. Combining Solar Panels, Home Batteries, and EV Chargers

For the ultimate value-added investment, consider combining solar panels, home batteries, and an EV charger into a comprehensive energy system. Tesla, for example, offers an integrated solution known as the Tesla Energy ecosystem, which includes solar panels, Powerwall, and EV chargers.

By integrating these components, you can achieve maximum energy efficiency and cost savings. The solar panels generate clean energy during the day, which is stored in the Powerwall for use at night and to charge your electric vehicle. This synergy creates a truly sustainable and self-sufficient home that will undoubtedly be attractive to future buyers.

In conclusion, making electric investments in your home can not only reduce your carbon footprint and save you money but also significantly increase the value of your property. Solar panels, Tesla Powerwall, EV chargers, and other home battery solutions are smart choices that make your home more energy-efficient, resilient, and appealing to potential buyers. So, whether you’re planning to stay in your current home for years to come or looking to sell in the near future, these investments are a win-win for both your pocket and the planet.

Tags Electric investment, Smart home

Tips and FAQ

FAQs

Post author By Rasmus Nielsen
Post date November 2, 2022

(Frequently Asked Questions)

If you are are thinking of selling your home or investment property, there are a lot of questions that may come to mind and it can all be very daunting. The good news is that you are not alone. Below we have shared our most frequently asked questions and please always remember that there is no such thing as a silly question so please do not hesitate to contact us with any questions that you may have.

Why videos can be a powerful marketing tool

Videos are a really powerful marketing tool when done properly. A proper marketing video, gives added value, not just a slideshow of existing photos. For instance, videos are great way to showcase what the house looks like in 3D. It gives an extra dimension. It shows features and benefits that you may otherwise not be able to pick up from the ad copy or the images. If you’d like to know more about how to do videos that will get more buyers looking at your home, do get in touch.

What type of lights are best when selling?

Lights are really easy to fix and they are really important to the property presentation.

You want your home to be as light and bright as possible and that’s why I recommend using cool lights.

Easy to fix. Just a trip to the shops to get some new light bulbs.

3 easy ways you can increase the appeal of your home when selling.

3 easy ways you can increase the appeal of your home when selling are.
1) Declutter. You don’t want a house that’s messy, but you also want to make sure that your home is light and bright. You want to remove items from the benches, especially in the kitchen to make the bench space look bigger. You also want to remove your fridge magnets and you want to depersonalise your home.
Another thing that is also worthwhile, is taking the personal images, pictures, etc, off the walls and replacing these with something that’s a bit more generic or vanilla, if you like.
2) The second thing is light, no one likes a dark home. So, an easy way to get around that is to just simply change the light bulbs to something that is a cool light as this will have more of a punch than a warm light.
3) The third one takes a bit more effort but it’s definitely something that can make a huge difference. Painting is very effective. You can obviously do it yourself if you want to save money. Alternatively, get a painter in. It could cost less than you think, and it’s definitely worth doing.

What can be excluded from the contract of sale?

In short, everything, but keep in mind that if the contract of sale has no special conditions, the property is actually sold in ‘as is’ condition.
An example of something that quite often is excluded is the reticulation, simply because it is very fickle and it can very easily break down.
However, you’ve got to be careful of not excluding too many things because it may put off prospective buyers.

What is the difference between a property appraisal and a property valuation?

A property valuation is carried out by a licensed valuer and it is something that will be done if you are refinancing, or you’re purchasing a property, where you need to get bank involved.

It is something that will cost money. A property appraisal is provided by a real estate agent and it is free.

They both establish a value or approximate value of the property with the possibility of listing the property for sale.

How much time do you need to settle a property?

Assuming that finance is already approved, you would want to allow a minimum of 21 days for the bank to prepare the mortgage documents for the purchaser, and to prepare the discharge documents for the seller. However, if both parties are using cash, you could settle within a couple of days.

If you’re unsure, it’s best to seek advice from your local real estate agent near you.

What stays when you’re selling your home?

Things like air conditioning units, ovens, fixtures that are bolted to the home will stay.
If you have pot plants, you can take them with you. If it’s a tree and it is in the ground, it will stay with the home.
Another way to think about it is this – if you take your home and you turn it upside down, what will still be in there? The personal belongings will be shaken out but whatever is left will stay with the home.

Is it possible to sell a property in “as is” condition?

The short answer is yes.

It could even mean that the buyer takes responsibility of the rubbish, the chattels, furniture, etc that normally will be removed at seller’s expense at settlement.

However, this makes it less attractive to a prospective buyer
especially, if the buyer is not able to buy the home subject to building and pest inspection. So to get around that, it might be worthwhile spending a couple hundred dollars getting building and pest inspections done up front and to provide that to the buyer.

Why should the seller provide a building and pest inspection report up front?

There’s a couple of reasons behind it.

From a purchaser’s point of view, it actually gives you transparency and more confidence in putting in an offer on the property.

But for the seller, there are some really great advantages as well.

1) The first one is that it is kind of like insurance policy because if something pops up you can deal with it and be ready for it in advance.

2) It also means that if it is something that could be potentially a deal breaker, you can exclude it from the contract because you already know about it.

So if you’re looking at selling your home, it might be worthwhile providing a building and pest inspection up front.

How to add colour to your home when selling.

It is easy to add colour to your home, simply get some paintings or some pictures that are full of colour. This way your home presents like a blank canvas.

What is the purpose of the final inspection?

The purpose of the final inspection is for the buyer to make sure that the seller has met their obligations under the contract. For instance, to ensure that things are in working order, if there are special conditions for that. Usually the buyer also measures up, checks things are in preparation for moving in, but that is not the purpose of the final inspection.
The final inspection usually takes place within one week prior to settlement.

Why a floor plan is a must have

There are so many buyers, who tell me that they get frustrated with properties advertised for sale and there is no floor plan. This makes it really hard for buyers to understand how the home is laid out. This is even more important for interstate buyers who may not be able to inspect in person.
Floor plans are really easy to create. If you don’t have a floor plan, don’t worry about it. That can be done and they don’t cost a lot.

Which website one should you market your home on?

You should be on realestate.com.au, because that has dominant market share, here in WA. You should also have your home for sale on Domain, because a lot of buyers here in WA are using it, and it has dominant market share in some of the Eastern States. And then there’s Reiwa, and it’s definitely worthwhile being on Reiwa as well.

Another thing to consider is that you want to make sure that you get maximum exposure on these websites, which means you need to get the premium package, because there’s no point having your home advertised for sale if it’s sitting on page three. It’s like looking at Google, very rarely do you go past page two.

When to use staging vs virtual staging

Presentation is so important when selling a property. Ideally, a property gets staged. If the no-one is living there, it can be staged so it looks like a complete home. It can also be partially staged.

If the house is empty, the photographer can take the photos of the empty house, and then apply virtual staging. It’s never the recommended version for us but it is sometimes the next best option if you have a tenanted investment property.

What type of photos to use when selling.

Photos are one of the most crucial parts of your marketing campaign.
You can have photos taken during the day or you can have photos taken at night which is what we call twilight. The twilight ones are definitely the ones to go for if you’ve got a very well presented home, you’ve got great views or you’ve got fantastic lighting.
It really comes down to the property but, do yourself a huge favour and get a professional photographer in regardless.

Why should you include drone when you’re selling your property?

Using drone photography or video is a fantastic way to showcase the location of your home. It could be that you are close to the beach or the city or you are close to some amazing cafes or another great location. It could also be about certain features of the property.

It is definitely something you want to consider when you’re selling your property, because it engages with the buyer, and that’s what you want.

Advertising your property on social media, is that a good idea?

Realestate and Domain have some really powerful retargeting tools that can be applied to your property when selling. And what they do is they look at what the people on their platforms are searching for, and then they can send the advert for your property to them as well. The great thing is that you don’t have to activate this straight away. You can do it as part of your campaign.

You could do it in week one, two, three, four, five although hopefully you don’t need to be on the market for that long. If you’d like to know more about how to advertise your property effectively on social media, do get in touch.

Didn’t find your Answer?

If you cannot find the answer on this page, please fill out the form below and we will get in touch. If you cannot wait (and we know that property is very easy to get excited about), please send a sms or call 0466 725 866

Get in touch