In my book The PROVEN Strategy To Leasing Your Property In ONE WEEK we review the three-step process to pricing a rental property.
Step One in this Six-Step Strategy is of course “Accurate and Competitive Pricing”, and I discuss how pricing a property is not as difficult as most agents and property managers insist.
Sure industry professionals will have a bit more accuracy and speed. But with realestate.com.au and domain.com.au, you can get a pretty reasonable estimation on your own!
The below steps to pricing are what we will discuss today.
- List the features of your property
- Establish comparables
- Rank by value offered
1) List the features of your property
For this we suggest you click and download the worksheet resources: Worksheet Pricing Your Property I Sydney Listings
Hint: This exercise is much better done when written out on paper. The reason is, our minds aren’t designed to balance so many factors at once.
When done on paper, it is a bit easier to see the full picture. This is important because you have to consider the property’s location as well as its other features.
These include the number of bedrooms, bathrooms and car spaces, age, style, outdoor areas, access, aspect and more. The build of the property and the way it is set up will impact its value.
Location, location, location. A property’s value will be impacted if it is close to schools, beaches, public transport, commercial areas, good amenities, shopping centres and more!
One useful factor to consider is the property’s walkscore – think about how much you’d like to live in a walkable area that is normally hard to drive around or park in.
A comprehensive list of features is provided in the worksheet! Here it is again: Worksheet Pricing Your Property I Sydney Listings
2) Establish Comparables
Now that you have a list of features, you can go identify a few properties that are comparable to yours. We will use these comparable properties to estimate the value of your own property.
Our first requirement for a comparable property is proximity. The exact same house as yours will have a completely different value if it was placed on the other side of the world.
Land has the most value, so ideally choose properties that are within 1-2km if possible. Remember, they must have similar location attributes.
An apartment on a main road might be within 500 metres of a waterfront house in Gladesville- this doesn’t make these properties useful comparisons.
The more features that match, the better the property is as a comparison. Ideally you would like four to five comparable properties.
Note, if you cannot find good comparables, use the Sydney Listings’ “Floor and Ceiling Method” instead.
3) Rank by value
Weighing each comparable against your property, come up with a rank, for where your property sits in comparison to these. Using reasonable judgments, you’ll be able to come up with a useful price range.
You’re now on your way to the hands-off, feet-up landlord experience. Remember you can reach out to the Sydney Listings team if you need help with pricing your property.
by Joe Wehbe.