When my son was sick last week I took him to our preferred paediatrician whom my partner and I trust in his competence to diagnose and prescribe any necessary remedies based on his professional competence and his experience in the field of medicine. It is however, not the first time, when my partner and I have decided not to take up the recommendations of a qualified practitioner.
I think that anybody may relate to this story in that we all have an inner gut feeling or an intuition that can sometimes irk us into making our own decisions that we feel are in the best interests of our family. This analogy can be transferred to several daily scenarios including but not limited to pricing your property.
Just like any professional, the role of an estate agent is to provide a homeowner with the necessary data, market knowledge and experience to make an informed decision. After all, it is the estate agent that views property on a daily basis. It is the estate agent that has historical data to forecast trends and it is the estate agent that has the live database of sold prices of properties in that particular area.
Though probably the most qualified profession to price a property a homeowner will ultimately always make their decision based on a compromise between the advice given from their estate agent, their expectations, the commitments they might have and most importantly their own intuition. More often than not this leads them to try and sell their home at a higher price than that of the market value, which according to statistics from a credible source is on average between 15% and 20%.
Marketing a home out of its market value is a common cause of properties remaining unsold for several months. It is proven that the more a property is overpriced the less potential buyers will even want to view a home for sale, whereas the closer one gets to market value the greater amount of potential buyers will want to see a property, enhancing the chances to sell the home. If you see the buyer elimination triangle you will further understand this concept.
Should homeowners consider a professionally equipped real estate agents advice more seriously, they not only would sell their property faster but will also sell at a more reasonable price. This is because potential buyers that view homes for sale marketed on several real estate websites for a long time tend to discount the homes that have remained unsold and eventually homeowners may be subjected to reducing their property price beyond market value. If a homeowner markets their property closer to market value with some room for negotiation the usual occurrence is that the home will sell at the top of market value.
A real estate agent should have the tools to sit down with a homeowner and provide what we call a Competitive Market Analysis (CMA). A CMA compares property listings that are similar to the home in question against sold properties of the same. By comparing historical data and present market information an estate agent should have the competence to narrow down an accurate valuation together with the homeowner.
The price of a home is one of the major factors that will define the length of time it will take to sell as well as the selling price of a property. There are other factors that will assist you in selling your home, including the presentation of your home and small enhancements that may also improve the value of a property. These tips and more maybe found out by your local estate agent.
The real estate agent is today’s market has changed into a profession where real estate companies are investing thousands of euros in training their staff and associates so that they will be able to provide a superior service to their customers. A professionally equipped estate agent will be able to provide the necessary exposure as well as competent seasoned professionals agents to provide the qualified guidance required in order to secure a timely sale of a property.
This article was published in part on the Sunday Times of Malta on the 8th of February.