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Are Online Auctions Here To Stay?

If you are looking to sell your home then you want to know what it is worth, but more importantly you want to keep this information to yourself (more on that at the end of this article....).

When I worked as an agent, one of my first lessons was that no matter how good you are, the value you give on a home can make or break whether the vendor chooses you.

I found out the hard way that this was true. I went into an appraisal and knew my value, as a former accountant it is something that I had to be good at. Here is an extract from my book 'Why Many Agent Lie And How To Keep Them Honest' which explains the moment I discovered my honest would make me a failure.

My appraisal with a potential vendor Jessica was going well, I knew the area well, the vendor’s situation and needs and had a lot in common with her. But then she asked me what I thought her property was worth, which is often a turning point in an appraisal. She told me she wanted $750,000 and other agents had agreed with her that that was an achievable price. Prior to the appraisal I had done my homework and found two other properties in the same street in better condition that had sold for $720,000. Based on that, I said $700,000 is realistic, and I would not want her to get their hopes up about an unlikely $750,000 result.

Jessica’s body language immediately changed, she became disengaged in the conversation and in the days to follow Jessica ignored my follow up calls. By the end of the week, the property was listed with another agent at $750,000. By the end of the month, the price was adjusted to $700,000. Funnily enough, within two days of the price adjustment, the property was sold.

I was correct in my price opinion, but as an agent, I failed Real Estate Appraisals 101. Tell the vendor what they want to hear and tell the truth later once they are locked into a contract with you.

So how do you know what the value of your home is? The reality is that it is only worth what someone is prepared to pay. The best way to value your home is to look at comparable sales as that is evidence in the marketplace of what is buyer is willing to pay for that type of property.

Another way you can value your home is to use my Median Price Trend Formula.

A good agent will know what your home is roughly worth. When a property sells above reserve, it is not because it got a great price, it means the vendor did not know the true value. Once you know a figure keep it to yourself! Here is why.

If You Overestimate

They will most likely agree with you and once you list with them they will spend the time talking your price down. Rather than focusing on upward pressure on buyers to get the best price, they will put downward pressure on you to reduce what you will accept.

If You Underestimate

This is where an agent licks their lips as you are an easy sell AND they can take advantage of the situation with bonus commissions. I have countless examples of vendors coming to me after they signed with an agent either realising they had been taken for a ride, or thinking the agent was doing an amazing job only to discover

It's Part Of The Service

By using our free service we help you establish a price and protect your interests to help achieve the highest sales result.

Win Win Property
PO Box 2023
Forest Hill VIC 3131

chris@winwinprop.com.au

0421 301 040

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