With all the excitement in my life lately with our house sale, I thought it might be a good time to review the importance of doing a through market comparison before making decisions regarding selling an important asset.

In my case we sold a house, which was the most valuable asset that my wife and I owned. So making sure that we were going to get a good price was important to us, but we also weren’t able to set too high of a price tag as we still needed to attract a buyer.

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Doing a Comparison

Before we listed our house, we did some research into the local area to get a guide as to where we should price our property. We discovered that the property market had actually become a little depressed over the last two years and so we weren’t going to achieve the sky high prices of 2011/12. Still, having that information handy allowed us to be flexible in setting our price expectations, and because we were keen to have a quick sale, we made sure we undercut our competition by enough to make our property standout, but also not sell ourselves short.

The same thing goes for other important assets like cars. Now obviously most cars aren’t anywhere near as valuable as a property, but they still cost a lot of money, and you don’t want to get short changed when you sell. The benefit of selling a car is that providing it is in decent working order, it should be a lot easier to sell than a house will be.

Before selling your car, I highly recommend utilising a specialist price comparison website to allow you to value you car based on common things like model, make, year and mileage. If you aren’t sure what your car is worth, then you might be interested in getting a car valuation from Compare Its Value to give you a better idea of where to price your car before listing it for sale.

Expensive collectables are also something that you might want to try and do some research on before selling. I have heard of some super high price tags thrown around for items that seem close to worthless to me, but to the right buyer, can be worth a lot of money. I personally own a handful of collectables, nothing super valuable, but I would always check what others are selling similar items for prior to listing anything I own for sale.

You might not think about it in this way, but things like this website and all the other online business websites that I own are worth a lot of money to me. It’s a bit of a different asset in that the operating costs can be as low as hosting and the domain name (less than $100 a year), but the value of all my sites would be well over $50,000.

I only know this because I have done comparisons on what other similar websites are selling for, I know how much money each site produces per month, and I semi regularly get asked to sell my site to potential buyers. The initial capital outlay might be low for each site, but the value has been built up over time and has real worth to the right buyer.

 

Question

What do you do before selling something of value? How do you set the price?