How to price your property for sale

A few short months ago, Sunshine Coast homeowners could ask an audacious price for their property and buyers would scramble to snap it up.

But now interest rate hikes and cost of living pressures have reined in the galloping housing market, and the uncertainty of what’s to come is making it far harder to judge the value of your home.

Aim too high and savvy buyers will dismiss your pricing as a throwback to 2021.  Set the bar too low and you may walk away with less than its worth.

Jackson Jones can help you find the sweet spot in this changing market between a listing price that’s enticing for buyers and one that’s still exciting for sellers.

There are three main ways you can estimate a property’s value:

1) CMA

Real estate agents should always provide a comparative market analysis (CMA) during a free appraisal. It’s an evaluation of comparable homes sold in your neighbourhood over the past weeks and months.

A CMA compares the size, condition and features of your property with those recently marketed in surrounding suburbs, as well as its proximity to amenities such as schools, transport links, parks and hospitals. Interiors, exteriors, lot size and building style are all used to form an accurate price appraisal.

Quality agents who really know their patch can advise on the subtler local market quirks, and how other factors (reputation of schools, flood map zoning, etc) may affect price. They’ll also advise on easy fixes likely to boost your saleability.

An agent will offer their price appraisal based on all the above. Yes, it is an inexact science, and there are plenty of unicorn properties out there, but good agents get it right very regularly and at Jackson Jones we’re known for nailing our appraisal prices.

Remember: agents are competing for your business and may tell you want you want to hear about value, rather than what you need to hear. Ensure you check out their testimonials and the prices they’ve achieved through their latest sales. And don’t be afraid to grill them on latest news analysis about how the housing market is performing locally and nationally.

2) Online estimator

Online home value estimators such as lendi and openagent use maths modelling to predict your property’s worth - again using comparable local property listing prices and recent sales together with public records of property transactions.

But beware: They’re a rough guide only and can be wildly inaccurate.

In a fast-changing market, online estimators are often behind the eight-ball on pricing because their assessments are based on sales rather than ‘under contract’ results. And comparisons based purely on bedroom numbers and land size can fail to take into account condition, finish quality and appeal of a property.

3) Paid market valuation

Still not sure if the price is right? You can hire a qualified valuer to give you a formal property valuation. They again assess the features of the property and comparable sales and listings locally, but also dive deeper into issues such as environmental and market risk factors.

This should not be confused with a bank valuation, which is always conservative and based on the amount the property could sell for quickly if the bank needed to recoup its costs. A market valuation is an estimate of what the property would be likely to sell for if it was listed on the open market. 

Valuers, like agents, can vary in quality but should be able to provide an accurate and unbiased picture of the property’s value within 2-3 business days.

Just be aware that such valuations cost money and are often unnecessary. Financial guide thebalance.com says: “Unless the property is so unique that the listing agent cannot prepare a comparative market analysis, paying for a full-fledged appraisal might be overkill.”

Our Jackson Jones top tips:

• Always use a trusted agent. Don’t be seduced by low commissions, low marketing costs and overblown home valuations.
• Use a pricing strategy which capitalises on the initial launch excitement.
• Be open to feedback. A good agent will have regular conversations with you about online views, listing ‘saves and shares’, enquiry numbers and buyer comments to ensure your pricing strategy is relevant ongoing.