The property market is constantly moving and what the final sale price of a property ends at varies depending on a multitude of factors, however, will largely be at the whim of supply and demand of properties in the market.
When looking at pricing your home, you first might consider basing the sale price off the current mortgage that you owe and how much you need to purchase your next property. While these are important considerations, at the end of the day these factors do not determine what the listing price should be or where the eventual sale price will land.
An agent will have local knowledge and an understanding of where your property may sit in the current market. They will also research several factors when it comes to pricing your home.
Comparable listings in the area
If you would like to get an indicator on where your property may price in the market, you could research current or recent sales in your area of properties that may be similar to yours.
You might consider the listed price for comparable properties and the final sale price to determine a range of where your property may be listed.
Choose properties that are comparable to yours, taking into account the size, number of bedrooms, bathrooms, living spaces and parking as well as additions to the property and inclusions. The age of the property and any potential improvements or renovations should also be included in the price estimate.
Look at withdrawn listings
While comparing to current or recent sales, some extra digging can also find properties that have been withdrawn from the sale that may be comparable property. Looking at these withdrawn sales will give you an indication of prices that a property didn’t sell for, whether they were priced incorrectly or if there were other challenges that prevented the property from being sold. These factors can give you a bigger range to consider when working out the price.
Calculating the price
When you have all the comparable sale data from other properties in your area, you can then pool the information together to work out the average listing and final sale price for those properties and compare them to find the approximate value of your home.
If you would like a more accurate price that your property may sell for, a local agent can help with a sales appraisal, or you could choose to invest in a property valuation to provide you with the value of the property.