Considering your competition is an important part of the strategy for selling your home. If there are 20 other houses with similar features to yours on the market in your suburb, then buyers are going to have 20 options to choose from.
By John McGrath – Real Estate Expert
Supply and demand plays a significant role in determining the sale price you will achieve for your home. If there is good buyer demand in your suburb and the number of homes for sale is low, those are perfect conditions for good quality properties to achieve a premium price.
Tight supply is one of the reasons you might see top results being achieved in a particular suburb if the overall market in your city is soft. Each city or region is made up of many markets. If the median house price in Sydney drops 2%, that doesn’t mean the median house price in your suburb will also drop by 2%. A critical factor is the local supply and demand in your particular vicinity.
So the first step is to check out your competition. Say you own a four bedroom home. Log on to the internet and search for four bedroom homes in your suburb to see the other properties your potential buyers might be considering. Is your home superior? Will buyers want to inspect your home in addition to other four bedroom homes on the market?
Also search for sales of four bedroom homes in your suburb over the past month or so to get an idea of the actual prices achieved. This will help you understand the market value for your own home.
In consultation with your agent, the next step is to work out how to position your property so it appears different to the rest. Maybe your house is the only four bedroom home with a north aspect. Maybe your land size is greater. The unique and most desirable features of your property should be highlighted in your marketing. Your photos should capture them and your advertising copy should mention them in the first few lines to immediately capture buyers’ attention.
Presentation is also critical, particularly when you have many competing homes for sale. De-cluttering and perhaps even hiring a stylist will really help you make your property stand out. Small repairs and improvements such as a house wash, new paint and garden landscaping will add major appeal.
Pricing is the next issue. When you have several competing homes, it’s more crucial than ever to price your property correctly. Your agent will provide you with expert advice in this regard. They’ll show you comparable sales, some of which you’ll already be familiar with from your internet search, to help you understand the current market value for homes like yours. Your agent will take market value into account along with the additional value that your home’s unique features bring to determine the correct price guide.
Selling by auction is an effective way of letting market forces drive up the sale price of your home. It’s also very useful in situations where there are a lot of properties on the market, as it gives buyers a sense of urgency and a deadline to work towards.
Talk to your agent about the properties competing with yours and how they might affect your sale price. Depending on conditions, you might want to hasten or delay the start of your campaign to take advantage of the best market conditions.
