How does a real estate agent assess the sale price of your home?

No-one really knows what a property is worth until it has been placed on the market, adequately exposed and marketed to attract maximum interest, and genuine offers are received from the market place. The old saying “ a property is worth what the market will pay” is also worth noting. Having said that however, an experienced Agent should be able to provide you with price parameters, within which the market is likely to pay. It must be realized though that the Agent’s price is still at best an educated guess. The market is the final umpire. So, how does an agent go about this? Some Agents go by gut feeling which is simply not good enough when dealing with what to most people represents their life savings. A good Agent researches similar properties currently on the market and also those recently sold, and compares these with the subject property to arrive at a likely sale price range. Another method employed by valuers and some Agents is to apply a rate per m2 to the property plus a $ amount for land, chattels and improvements. This is a clinical assessment method based upon extensive sales analysis. Once a likely sale price range is arrived at, to which the vendor and Agent agree, the marketing method can be discussed. It must be said that a “one method fits all” approach should not be adopted. Every property is different and what works best for one property may not be the best for another.