Setting the sale price of your property is about achieving a balance between what the market will be prepared to pay, the actual value of the home, and of course, a number you are comfortable with.
Make sure you’re working with a knowledgeable real estate agent who understands the local market because they will be able to assist. But ultimately, the final decision is yours.
So how can you go about settling on a price that will ensure you get the result you’re after, without going too low - and missing out on more - or too high - and risk your property languishing on the market?
Understand the current marketplace
If you haven’t had to consider the property market for many years, you should get a good understanding of what is actually happening out there for homeowners. Is t a buyers market, or are sellers doing well? And closer to home, what have houses been selling for in your neighbourhood?
General Manager of PGG Wrightson Real Estate, Peter Newbold, says he thinks what will have a big impact on properties selling in 2025, and for what price, is whether buyers and sellers can agree on a number that satisfies them both.
“It’s about finding the right balance of what a property is worth. If there is a gap in between what’s expected by a seller and what people are prepared to offer, then it will be harder to get a result. Even though interest rates are dropping, buyers are still very cautious about overpaying.”
It is worth attending a few open homes, and overseeing some auctions too if possible, just to get an overall feeling of where your property may be sitting. This will help you to decide whether you may need to do some updating, or if you will be able to pass it on as a desirable ‘doer-upper’, so that people can stamp their own mark on it.
Buying a home in New Zealand is $8000 cheaper now than a year ago, but OneRoof's latest monthly house price index shows prices are starting to climb again.
How do you want to sell your home?
There are plenty of different options when it comes to the way you sell your home - from auctions to private deadline treaties. This should be discussed with your agent, and depending on what you decide, it will give you a rough guideline of where your property may sit in the market.
If you want to sell at auction, this will require a typically short, busy campaign of around a month - you will need to be prepared for a flurry of activity and you’ll be required to set a reserve price. But in a quieter marketplace, it could be better to get interest from individuals by deadline sale. This encourages potential buyers to put their best offer forward, or risk missing out, and allows you to get an accurate idea of the current market value of your property.
The suburbs that ‘made the most money’ in 2024 were Lake Hayes, Arrowtown, Wanaka, Queenstown, Matakana, Mt Pisa and Lake Tekapo.
Focus on the facts, not on feelings
Gather as many facts and figures to work with, because it’s important to not rely on your own personal opinion of your property’s value when it comes to setting the right price.
From trends to recent sales prices - almost everything you need to know about property prices is online. And you can also engage a registered valuer to give you an accurate view of the value of your home. Of course, your local real estate agent is also a great source of knowledge when it comes to recent market sales activity.
Remember, while feelings do come into whether someone wants to buy your property, they also don’t have the emotions tied up in its value the way you do. So it’s crucial to be realistic and competitive when pricing your home, because unfortunately the only true worth of your property is the price someone is prepared to pay for it - not what you think it should be.
In November 2024, the NZ median house price (excluding Auckland) had increased by 0.7% to $705,000, year-on-year.
How are your finances looking?
It’s definitely worthwhile taking a trip to see your mortgage broker/bank manager, just to see where things are at. This will give you an overall view of your current financial situation, and what equity you have in order to move into a new property.
It is important to also know what finances you have available as it will have a direct impact on what you will ‘need’ from the sale of your home. If you’d prefer to buy before you sell, it’s important to know how much you can negotiate with, and if there is a minimum sales price required in order to move on.
Christchurch was the second-highest metro in New Zealand when it came to annual property value change in 2024, at 0.6%. Queenstown-Lakes was in top position with 3.9% and all the rest (Dunedin, Hamilton, Tauranga, Auckland and Wellington) saw negative property value changes.
So… what happens if you don’t set the right price?
Potential buyers will be searching online in certain price brackets, and if yours isn’t in the range they are looking for, it won’t be found by the right market!
Too high, and you’re likely to have your property sitting on the market for a long period of time. At which point you may have to take it off for a break, and put it back on at a later date with a lower price.
Too low, and you might not get what it’s worth. Although this is very unlikely to happen (as not many people ever get caught out selling their house less than its actual value), if it’s not being seen by your target buyers, you won’t be able to get the interest you’re looking for.
But the good news is - partnering with the right sales consultant will minimise your risk of ever setting the wrong price for your property.
In November 2024, days to sell increased to 42 nationally - up four days from the same period year-on-year.
Keen to find out what your property might be worth? Our local and experienced sales consultants are waiting to hear from you - PGG Wrightson Real Estate have offices nationwide, find the one closest to you and contact us today!
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