When engaging an agent to sell your home you will need to review and sign a sales authority.
An important part of the authority is the agents estimated selling price. The agent must fill out this section before you sign the authority.
The estimated selling price is what your agent believes that a willing, but not anxious buyer would pay for the property. It is based on their skills, knowledge, which includes comparable sales evidence. Asking your agent to discuss with you the comparable sales evidence will help you understand how the agent has determined the estimated selling price.
As the agent’s estimated selling price is based on previous sales activity and market conditions it may be that over the course of the marketing campaign that conditions may differ from when the estimated selling price was initially determined. You may receive an offer above or below your expectations or a similar nearby property may be sold providing a more relevant price guide. In this circumstance the agent may revise the estimated selling price to reflect market conditions.
If this is the case your agent will explain to you the reasons for the change and you will need to initialise the change on the authority.
The estimated selling price may be expressed as a single sale price or a range of not more than 10 per cent. A property can of course have an advertising range greater than 10 per cent, as long as the base of the estimated selling price is not higher than the base of the advertised price range.
When it comes to actually selling your home it must be remembered that the actual sale price will reflect the demand on the day for your property and may ultimately be different to the agents estimated selling price.
Next week we will cover the advertised price in more detail.
Enzo Raimondo
CEO REIV
