Vendor Traps Part 1
Selling your home is one of the biggest financial decisions for most Australian families. As this decision is usually an emotional one, the following part 1 of this 2 part article gives you the in’s and out’s for avoiding what I call “Vendor Traps”.
Trap No.1 – What’s my house worth?
Again and again I hear about over-inflated price expectations for family homes. Understandable really when you consider the key to winning a listing for an agent is building up the wealth expectation for vendors. My experience in talking to many vendors is that the highest price guide by an agent is usually the one that wins the agency agreement. Vendors should try to tame some of their emotions by doing their own research. This should include answering the following questions;
– What is the unimproved capital value of my land
– What would it cost to replace this house
– What per square metre rate have properties been selling for in the area
– Is my property better or worse than those comparable sales
– And finally is there an X factor that should influence my homes valuation
This X factor can be either a positive or negative on the property’s value. An over 55’s apartment in close proximity to shops is certainly a positive factor. Whereas one recent waterfront that I viewed was magnificent on all fronts except that a stormwater pump station was situated outside it’s boundary and certainly affected buyers at the advertised price guide. Do your research.