The margin for error when pricing a home has shrunk to virtually zero, and the key to selling successfully is getting it right from the get-go. Photo: Lystr.
An outdated strategy could be costing property sellers thousands and tanking their campaigns before they even take off.
Across the country, properties are sitting on the market longer, with some listings blowing out to over 100 days. But while some blame the shifting real estate landscape, one expert says the real culprit isn’t just market volatility, it’s flawed pricing tactics.
Director of real estate disruptor Lystr, Chris Scullin, says that “pricing high to see what happens” can significantly harm a campaign under current conditions.
“Some 80 per cent of the total number of views come in the first two weeks of your campaign launch,” he says.
“It’s pretty simple: if your property is overpriced, you’ll miss a lot of eyeballs, most people won’t circle back, and your property will become very stale very quickly.”
Luckily, the days when reliable data was reserved for real estate agents are over, and pricing correctly is now easy for the average Joe.
Sellers can enter their address to access recent, reliable comparable sales data in their area or get free appraisals from agencies like Lystr, online property portals and institutions like banks.
But it goes both ways.
Today’s home buyers aren’t guessing — they’re walking into open homes educated and equipped with live data and AI tools.
“We’re literally seeing people coming through open homes with ChatGPT open, and a recommendation to put in an offer for X amount,” Chris says.
He says to succeed, sellers need to embrace hard market facts from day one, and beware of “inflated” promises.
“Often sellers select the agent based on a higher appraisal, and there’s a huge risk in that,” he says.
“You’ve signed a 90-day contract, and now they’re convincing you the market has changed and you need to drop the price, when in fact the initial expectations were not aligned with the market.
“You, as the seller, take on all the risk if the price is wrong. And contrary to what many people think, agents are not financially motivated to get a higher price. Ultimately, $100,000 extra on your property might mean a lot to you, but after fees, an agent on an average 2.2 per cent commission is not pocketing that much extra.”
It’s the reason Chris recommends sellers undertake their own independent research to get objective, data-driven insights.
The Lystr Pricing Lens, for example, has been specifically designed to help sellers manage expectations and get their pricing right in that crucial first fortnight.
Sellers can enter their property data, including any renovations or changes that may not be captured in existing online records, to obtain a more accurate appraisal. They also have the option to confirm the price they think their property is worth.
“Lystr Pricing Lens might say, ‘That price is 10 per cent higher than current average properties in your suburb. For that price to be accurate, your property would need to have superior fittings and finishes, or be fully renovated into a turnkey solution’,” Chris says.
“You also have access to a Lystr agent where, if you wanted to refine that appraisal further, we can do things like a video walkthrough of your property and help build a more accurate appraisal out of that process.
“From there, sellers can make adjustments or go into it with their eyes wide open.”
For more information, visit Lystr.
Original Article published by Dione David on Region Canberra.
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