A question that I am asked on a daily basis is ‘What is my property worth?’. As you can imagine, real estate agents are appraising property on a daily basis and for most of us we use a ‘comparative market analysis’ to determine value.
When I started in real estate some 16 years ago. I asked my employer at the time for the formula to appraise. In my mind, you could add a percentage or fixed price for a bedroom, bathroom or garage.
What I have come to learn though is that real estate doesn’t sell for ‘comparative value’, it sells for ‘market value’. The property that sticks out for me was a four bedroom house in Vermont Street, Sutherland back in 2010. The record price in Sutherland for a four-bedroom house was $830,000 . I felt this property was better and could fetch $900,000 but there was no evidence to suggest that. Now, I won’t give you the whole story but what I will tell you is that I sold the property for $1,000,000 and set a new record for the suburb.
My lesson from this sale was that this process shall replicated and if I managed the variables in my control in the right way that I could manipulate value favourably.
By the same token, I observed the variables that impacted price negatively. So, they designed my process to avoid or mitigate these.
Now, when it comes to price, the truth of the matter is we never really know market value until we test the market. Put another way, I don’t know the price until I find the buyer who buys the property.
However, some agents see themselves as valuers. They focus on ‘comparative value’. In my view, as a professional salesperson, my role is not to analyse value. So, it is to create or add value!
Now, I am not going to give away all our secrets in this blog. But I will tell you that there are three key areas being Marketing. Negotiation & Communication where we can add value as professional real estate agents.
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