If you are hosting a house-warming party at your recently purchased property, at least one of the guests will ask you what you paid for it. This will inevitably start a spirited conversation about property prices, their fluctuations, how they are arrived at and questionable theories about housing markets by people who are not very expert on the subject.
Key differences cause variations between similar properties
Generally, variations between the prices of similar properties occur because of key differences. Although the properties may look the same, one may be in a less desirable area than another, one may be better maintained than another, one may have better landscaping or more stylish interior decor than another, and so on. Of course, this only applies for sales happening in the same time frame and the same market.
Different prices for the same property?
So how is it, then, that sometimes, an advertised property will have prices that vary? This can happen when a property is listed with several agents at different prices. Purchasers report that this is one of the most frustrating issues they face when looking to buy a property. It immediately places doubt in their minds as they wonder why the same property would not have the same selling price.
Sellers must be realistic
It is natural for sellers to want the best possible price for their property and real estate agents do their best to get that price. However, sometimes they are pressured by unrealistic sellers to list a property for a price that is unachievable in the current market. When the property does not sell, the seller lists it with a different agent with a minor adjustment to the price. The same thing happens, and the seller again lists with another agent at a different price.
At Bunbury Real Estate we offer an online process that allows a seller to get an initial appraisal and market report, followed by a personal consultation with one of our real estate professionals. We give sellers realistic expectations based on the performance of the current market. This enables them to price their property to sell while our team goes to work to get them the best possible price and terms.
Choose your selling agent wisely
The last thing a seller and their agent wants is for prospective purchasers to doubt the integrity of the property, and seeing it advertised for different prices will immediately raise questions. This is why it is vital to choose a selling agent wisely and consider listing with only one agency. Always remember too, that property, like every other commodity, is only worth what the market of the day is willing to pay for it.