Whichever way you decide to sell, the market value of your property will be determined by what buyers are prepared to pay for it rather than your asking price. One of the benefits of selling off-market is greater control over price, but ultimately, success necessitates a comprehensive understanding of current market conditions.

Current market conditions determine the market value of your property

Your property is only worth what someone is willing to pay for it. However, the asking price you agree with your agent is the best indication to buyers of where it sits in the market, and because with a private treaty sale your sale price is likely to come close to it, you must be as accurate as possible.

So, how do you decide on your asking price? How do you give your property its best chance of success on the market?

Below are our recommendations:

1. Keep your eye on any real estate news in the press for any predictions in terms of changes to market conditions or market value.
2. Attend as many local open for inspections and auctions in the area. They will give you a clearer indication of the market value of your property and your competition. Even when the land size and floor plans of other properties are similar to your own, it is important to take into account other factors as well, like the overall finish of the property. You may think details like whether there is a garage or a carport, or a large or standard-sized deck are minor, but they can make a difference to the price.
   
3. Pick the right agent – There are many reasons why your agent will be your best friend during your sales campaign, but the main one is they know the market conditions of your area, which will ultimately determine your listing and sale price. The comparative market analysis your agent does for your “appraisal” provides you with invaluable information about local trends.
   
4. Find out the current "auction clearance rate", because this is a good indication of the current level of demand. The “discounting percentage” is also an invaluable tool, as is knowing how many days properties in the area are sitting on the market before they sell.
5. Do your own research. Compare properties that have sold recently in your street with yours. Compare the list of specifications below and if they measure up, you can be confident that you are comparing apples with apples in terms of the market value of your property meaning you may sell within a similar price range.
   • Land size
   • Position in the street - high or low side
   • Number of bedrooms/bathrooms
   • Fixtures and fittings
   • Style and finish of the exterior
   • Finish and condition of the interior
   • Any special features such as a view, pool, school district, local amenities etc
   • And don't forget about any unique features that may add value to the property or make it stand out on the market, such as views, renovations, improvements, or even a pool
6. And finally, be honest with yourself - The research your agent brings to the table will start your discourse around the price of your property, but obviously, your input is invaluable because you have lived in the property and the area and understand its pros (and cons). But be honest with yourself. Ultimately, you must decide if your property is superior or inferior to the ones you are comparing it to. NB. For effective comparison, you should only look within 1km of the property and at sales over the previous 6 months. Don’t include properties that haven’t sold yet as their listing price may be unrealistic.

Research is key

Understanding as much as you can about current market conditions will help you determine the market value of your property. And so long as you use reliable sources for information in your research – rather than online estimators, which should only be the first step - you can rest assured you have carried out your due diligence.

Work with your agent

Your agent and stylist (if you hire one) may also make suggestions in terms of repairs or improvements to maximise the price of your property before you list it - cosmetic renovations such as a new coat of paint, carpet or blinds, or larger-scale renovations such as a new bathroom or kitchen – and they will also provide advice about presentation. However, it is always prudent to carry out your own research to ensure a return on your investment.

Try to stay objective

It is natural to be emotionally attached to a home, which can make it hard to acknowledge any negatives, but if you price your property out of the market and it doesn’t sell quickly, potential buyers will wonder why. Under-price it, and you may lose out on some of its potential profit.

Listen to your agent and discuss the price with friends and family who know the area before you make your final decision.

If you have decided to sell, our Seller Assist service will help you find the right agent - one who understands the market conditions in your area and who has a history of successful sales behind them. And if you want to check out our latest off-market listings and the market value of any properties, many of the above recommendations will also apply to you.

Keep up-to-date with our latest listings on our marketplace or download the Listing Loop app. Not yet a member? No worries. You can sign up here today for free.