03 Sep The right price
“There’s no such thing as a bad product, just a badly priced product,” says V Three Real Estate’s Senior Property Partner, Steve Meins.
It is something the experienced agent learned early in life and now applies to the real estate market.
“The same thing goes with a property. You can have the best property, in the worst area, and it’s priced wrongly, and it won’t sell. The best property, in the best area, priced wrongly, won’t sell.”
“It doesn’t matter where or what you are selling, you have to make sure you price it correctly.”
He says typically the vendor wants as higher price as possible while the buyer wants as lower price as they can get and it’s his job to make sure the vendor is aware of the price comparisons the buyer is going to be making, potentially bringing the two parties together to reach agreement.
“You have to do due diligence and show people how you arrived at a price,” Meins says. “It’s not the man standing at the door for half an hour on Saturday, he should have done a lot of hours work prior to being in that position. That’s what we do.”
Founder and Director V Three Real Estate, Ruan Perera, says people are also looking for good features inside their home, another influencer on price.
“Buyers are highly educated these days, so they know what features and atmosphere they want inside a home,” he says. “But it doesn’t mean that a lower quality home doesn’t sell, it’s the price that a buyer is willing to pay for this home compared to that they want in their home. There’s always a range of different qualities of home in a suburb and a range of prices.
“Take any single suburb; there’ll be varied price ranges on what’s selling. It comes back to the quality of the home compared to what else is available to that buyer and what the vendor is trying to achieve, price wise.”