Have you ever wondered how a property can be listed for one price, valued at another and then sold for a figure that leaves you scratching your head? With all of these figures floating around how are you supposed to know which price is right?
We have put together an explanation on each price in an attempt to ease your confusion.
The Bank Value
If your home is to be mortgaged, your lender will most likely need to value the property as this provides them confidence that your asset offers ample security against the borrowed amount.
It is for this main reason that the bank valuation will usually be more conservative
The Agents Price
Agents are commonly asked to assess the market value of properties as this can help a vendor decide who to engage to sell their home & determine if it is the right time to sell at all.
In order to assess the value of the home your agent will typically conduct an inspection and research comparable sales in your local suburb before producing feedback and a sale price estimation.
The Selling Price
Regardless of whether the property is sold via private treaty or auction, the price the successful buyer is prepared to pay, and the vendor is willing to accept, on the day the contract is signed is the property’s legally binding sale price.
In a competitive market the selling method and demand for housing in your suburb can have a big effect on the final sale price for a property.
The Homeowners Price
Every property owner will have an ideal price in their minds when they come to sell their home.
Homeowners need to be aware of their properties location, aspect, features when determining their ideal price and try not to be influenced by emotion rather than the facts.
It is for these above reasons that you should seek out a reputable agent with a proven track record. MMJ offers 10 offices nationally with local experts in town planning, commercial sales, residential sales, valuations, property management and strata management. Visit mmj.com.au to visit your local office today.