No one goes on the market for fun. When you're thinking about selling, you want a good result. As good a price as possible, in a reasonable period of time.
It's natural to want to maximise the price and nobody wants to leave money on the table. This is where market expectations start to shape your decisions before you've even listed.
At this stage you'll likely have a target figure in mind. A 'hope-to-get' price. This is usually informed by appraisals from real estate professionals, online value estimates, and recent nearby sales of similar properties.
But here's the thing to work through before you list: is that figure realistic, or is it based on what the market used to do rather than what it's doing now?
Are your expectations still accurate?
Markets shift. Interest rates move, bank lending criteria change, and the number of properties for sale goes up and down. All of this affects what buyers are actually prepared to pay.
One thing worth noting: because prices in most areas have been flat for the last couple of years, comparable sales data is more reliable now than it might have been during a correction. Back then, comps were often lagging behind where the market had actually moved to. Right now, recent sales are a genuinely useful guide to where your price expectation should sit, whether you plan to market by set price, auction, tender or price by negotiation.
If your appraisal or expected figure feels notably higher than recent comparable sales in your area, that's worth sitting with before you commit to a goal price.
'But I don't want to undersell...'
It's natural to worry about leaving money on the table before you've even started. But you can't lose a price that was never really there. You can only work with what the market is currently prepared to pay for a property like yours.
The question worth asking yourself is:
"Does the current, realistic market value of our property let us do what we actually want to do next?"
If the answer is yes, there's a strong case for setting your price expectation in line with the market from day one, rather than testing a higher figure first and adjusting later.
Remember, you're buying and selling in the same market
If you're planning to buy again once you sell, it helps to remember you're playing both sides of the same market. The price you get for your current home isn't the only number that matters. Whatever you buy next is priced under those same conditions.
If your sale price feels lower than you'd hoped, your next purchase is likely to feel the same way in your favour. A flat market cuts both ways.
This is a different way of thinking than comparing yourself against sellers from a few years ago, in a market that's since moved on. What matters more is the relationship between your sale price and your purchase price, both happening in the same conditions, at the same time.
Worth noting: this logic applies if you're buying again. If you're selling an investment property, downsizing into a retirement village, or cashing out without buying elsewhere, this particular comparison won't be as relevant, and it's worth focusing purely on getting the best achievable price for your situation.
Before you set your price expectation
Ask yourselves:
"If someone walked in today with an unconditional, cash offer, what number would we accept?"
Once you know that figure, that's a strong starting point for your price expectation, whatever method you use to bring your home to market. Setting expectations close to that number from the outset tends to generate more genuine interest than starting high and hoping.
And once you do go to market, keep revisiting these questions every 2-3 weeks. Conditions can shift even in a flat market, and staying realistic along the way puts you in a stronger position than holding out on a number the market has already moved past.
What's next?
You may have a number of other questions about the selling process. How much does it cost? What renovations add the most value? Should you buy first? Or sell first?
Call us today to book a no-obligation chat about your upcoming move. We love putting our vast experience to work helping owners in our community make smart real estate decisions.
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Selling your home is a major life event. Getting the process right can save huge amounts of time and stress. It's also a one-off opportunity to maximise your net worth. Use these tips to increase your