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Guide Price: Getting it right first time isn’t just professional, it’s practical

Valuing your home nowadays is easy, right? Well, not quite. Ever-increasing transparency and use of technology across the industry has certainly improved property pricing over the past decade.

For example, the valuation tool and Revenue guidance for valuing your home for Local Property Tax (LPT) is handy for home owners when assessing their tax liability, however, it’s of less use to those thinking of selling their homes – least of all because the LPT is currently based on 2013 values!

I understand it can be difficult to try work out why your neighbour on the right is asking €10,000 more than the guy across the street – especially when you’re secretly thinking that your home is worth more than either of theirs because of your meticulous annual paint job and reseeded lawn! And you might be right, but that’s not how the market works. As a seller, you can only decide on your acceptable price range. The market will determine what your property is worth and only a finance-ready buyer can decide what they are willing to pay. It’s my job to know the market and that means knowing your competition and knowing your likely buyers – or how to attract them at any rate.

As a professional valuer, the ‘sweet spot’ for launching a property is on par or just 5% above or below the most recently achieved sales price for a substantially similar property within the previous 4-12 weeks, depending upon local supply and demand. It sounds complicated, but in practice, it simply requires local experience and current market knowledge.

In slow moving areas, the National Property Price Register will be a vital tool, however, it must be pointed out that these transactions are recorded after the conveyancing process completes, which can take anywhere between two to four months (and sometimes longer). In a fast-moving market, the Price Register cannot be used in isolation.

As an estate agent, it is my job to achieve the best possible price for your home, in fact, my wage depends upon it. I know from experience this is rarely achieved by launching a property to the market at a price that is too high. Buyers won’t accept it and the local market can’t bear it. Strategically, it is one of the biggest mistakes that private sellers make, especially in an uncertain marketplace. It is true that, in time, the price can be reduced if the property fails to sell, but this is a pretty unsophisticated way to test the market for such an important, and often life changing, transaction. One of the downsides of doing this is that would-be buyers will rule out the property without ever viewing it if it appears to be over-budget or not good value for money. And once a potential buyer has lost interest in your property, it can be difficult to entice them back, even with a price reduction.

In reality, the biggest disadvantage to getting your launch price wrong is the extra time that your home will take to sell.

Here at Kinsella Estates we want to help you get this right first time. We offer a consultative valuation of your home, free of charge. What this really means is that not only will we value your home for the market, we will explain the factors that make up the figure so you can better understand the forces influencing the recommended guide price.

 

If you are considering selling in the South Wicklow and North Wexford areas, call into one of our offices (located in Carnew and Gorey) and chat to any of our expert team or you can contact us online at kinsellaestates.ie. We are happy to facilitate overseas buyers and sellers via Skype or similar, outside of regular office hours.

Alternatively, email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718

on Tuesday, November 28, 2017 in News

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