Needs seldom dictate price

There are many things that impact on property prices.

There are many things that impact on property prices. There are the internal things, like size, condition, features, location, future development potential. There are also external factors – such as supply and demand, which in this market is having an outsized affect across the board. One thing that doesn’t affect the price however, is how much you NEED to sell for.

Don’t get me wrong – this is a market where what you WANT to sell for is generally pretty achievable. More often than not, the lack of property supply and continued buyer activity is providing plenty of opportunity for sellers to achieve their dream price and more. That’s one of the benefits of a rising market – sometimes the pace of that rise can exceed expectations, resulting in that extra special feeling (and price) at the end.

A rising market will not however meet ALL expectations, and it is still very possible to be seeking a price that remains above market appetite and feedback.

This can happen for any number of reasons. Quite often, we attribute an emotional value to property that a buyer just hasn’t had time to match. That comes with the benefit of years (or decades) of enjoyment and memories, which naturally can be a big ask of a buyer. Perfectly understandable, and one of those things where the right marketing and presentation can go a long way to getting that love (and a few more dollars) across.

Another common occurrence can be where a seller has their mind set on their next step, and having made the decision to pursue that plan, needs a set amount to make it happen. This can often look like “I need XX in the hand to buy YY so I want XX+. Where that number matches the market, or is within reasonable reach, then it can all work beautifully. But where that idea is a stretch from the circumstances, it can make for difficult conversations. I can recall a decade ago in the early part of my career (in a very different market from that of today) where sometimes that magic number was just to clear the debt on a property which had crashed in value. Today at least those hopes tend to be more aspirational – retirement and no mortgage or moving comfortably to the next home.

When setting your price, its important to focus on the market, not your circumstances. Seek an appraisal (or 3, if it helps)and consider feedback. You can always try for a premium to suit your needs (and sometimes get it) but make sure you have a plan B.