Setting the Advertised Price
The advertised price will be treated by potential buyers as a guide for negotiations and interested parties may make offers higher and/or lower than the advertised price.
Determining the price at which to advertise your property is a very important decision and one that should be made in consultation with the sales representative engaged to sell your property.
The price or price range that the sales representative uses to advertise a property has to follow strict legislative guidelines. These guidelines have been devised to combat underquoting - or bait advertising - where the sales representative advertises a price lower than the vendor is willing to accept to lure buyers to the property.
At the time of signing the Sales Agency Agreement to appoint your sales representative, you must determine a price that is acceptable to you. At the same time, the sales representative must specify a genuine estimated selling price. Both of these figures are included in the Sales Agency Agreement and must be used when determining the minimum advertising price.
It is essential to set a price that is realistic, remains attractive to buyers and reflects the full market value of your property. Location, size, age and extras are important features in establishing a price. You are able to adjust your expected price at any time, but this change must be made in writing and signed and dated by both the vendor and sales representative.
As a vendor, there are many ways to get a sense of the market in your local area. Do your research by reading the real estate sections of your local papers, visiting websites such as www.realestate.com.au and, ask real estate salespeople about recent sales in the area.