ADVICE TO SELLERS: PRICE HOME CORRECTLY FOR A QUICK SALE
Category Advice
“It seems the most obvious advice - to sell a home quickly, you need to price it fairly and in line with comparative properties in the area,” says Nelio Mendes, marketing manager of IHPC estate agents.
A recent sale in Hout Bay is a case in point, where a three bedroom home was sold within one week of listing it, at its full asking price of R3,285,000.
“While this property has many things going for it, with majestic views of the valley and surrounding mountains, as well as the home itself being a very comfortable low maintenance family residence, the fact that the agent counselled the owners in pricing their home for a quick sale was a huge factor,” said Mendes.
IHPC also recently sold an apartment in Vredehoek for slightly above the asking price within three days of listing it. Both these sales are indications that once a buyer sees a property he wants, and realises that the price is right, not just for him but fair in terms of the market value of the property, that he will in all likelihood offer the asking price and not automatically try to negotiate down.
In working out a market value for a home, the agent will compile a comparative market analysis, where the current sales listings are compared with those that have sold in the last six months to a year and take into account what the owner wants for his home. It is important to compare like with like, and then also allow for intangible value adds such as views, proximity to a beach or green belt or that it is in a quiet cul de sac, said Mendes.
Other things that will affect the value of a home is whether it has recently been renovated, whether the finishes are above average and whether power saving or eco friendly systems have been installed to benefit the owners of the property, etc., he said.
“Sellers must resist the urge to ask for that little extra, which could result in overpricing it. If a property is overpriced, it will stay on the market with little or no interest for a protracted period and a stigma is then attached to it. Whilst it is understandable that sellers want to get the best possible price for their property, overpricing it or pricing it out of the market may well not assist in selling the property at all.
“Buyers nowadays are incredibly astute in that they are aware of the property prices and values in their area of choice. They will do a lot of their own research before looking for a home to buy, and they will in many cases know exactly what they should pay for something before viewing a property,” said Mendes.
Author: IHPC
