Determine The Right Asking Price For Your Property

Category Advice

Determine the right asking price for your property

With fair market value a priority for today's consumers, for homeowners wishing to sell their properties, it is critical that the home is pitched at an accurate, market-related price that will enable it to compete with other comparable properties for sale or rent in the area.

This is particularly important in the current buyer's market. By its very nature cyclical and consumer-driven, the property market reacts as the balance between demand and supply shifts, so pricing your home right requires expert advice.

Market Research

Today's buyers across all price sectors are extremely savvy and research the market thoroughly before committing to a purchase decision, so it's imperative that a property is not brought to market at an unrealistic price. If you don't capture the market within approximately the first two weeks, then it's most likely you've lost those prospective buyers.

Buyers and Offers

Buyers, and particularly first-time millennial purchasers, are watching market trends and prices achieved to ensure they make informed intelligent offers.

They tend to have an excellent understanding of the market as they look at stock listed by different agencies. If a seller is asking way over market price, he/she will either not attract the buyers to the house or will elicit an offer way below the asking price.

Sellers and Negotiation

It's a misconception among some sellers, that a property should be pegged at a considerably higher price than its market value, to allow for any downward negotiation. An inflated price might result in multiple price reductions, which ultimately could see the home sitting on the market for much longer.

The fact is, overpriced properties stay on the market for longer and normally result in achieving a lower price than if they went to market with a more realistic price.

Well Priced Houses Sell Faster

Set your price in the context of prices achieved for similar homes sold in the area. Ask your agent for a comparative market analysis. Some agents try to lock sellers into mandates by overpricing, only to be let down when no buyers visit or a low offer comes in.

The last thing you want is for your property to sit on the market for a lengthy period and then become 'stale', as buyers know when a home is over-priced or remaining unsold.

Contact our Property Practitioners in Cape Town & Gauteng here, they are Area Specialists who will guide you through the process of Pricing, Listing & Selling your home.

Competition

Sellers also are advised to take note of the number of properties on the market that will be competing with their property once they go to market. The more properties there are on the market the more your home has to stand out from the rest and offer good value for money for buyers. Also take note of any positive development occurring in your area which could advantageously influence the sale of your property.

If your property is not competitively priced, it will be rejected by the market and point the buyers in the direction of the other properties.

Additional Factors to be Considered

• What you spent on any additional improvements & how much money you need to be able to purchase your next property.
• Property search portals require the user to enter a price range to narrow down their search options. If the asking price is R755 000 and the buyer's price range is from R700 000 to R750 000, the home will be missed. By listing the property at R750 000 it will stand a far greater chance of capturing potential buyers in the ranges above and below the asking price.
• Obtain expert advice from a professional and experienced agency operating in the area and then take the agent's market assessment into account when pricing your property for sale, be flexible on viewings and allow show days, and ensure your home is always neat and presentable.
• Having a dedicated agent market your home achieves much better results than having it over-exposed and available to all. Not only is this a security risk, it can also lead to double commission claims and buyers thinking the seller is desperate to sell - which could lead to lower offers. Having one agent control the listing, position the property in the market and work a strategy to maximise the selling price is the best way to sell your property.
• Presentation is critical and the home should allow the potential buyer to feel that they could just move in. Remove all clutter, tidy up, freshen up paint work, deal with all the overdue maintenance.
• What you paid for your home has nothing to do with its present value. The value of the property should increase roughly by the suburb average growth rate per annum.
• The price you would like to achieve for your home doesn't dictate the asking price. Again, the current market determines the value of your property
• The value other agents put on your property is not always accurate. Ask the agent to substantiate their value assessment. Experienced and professional agents will normally result in the same or a very similar valuation.
• What a valuator says your home is worth doesn't determine the price in the market. Bank valuators look at area statistics they source from the Deeds Office, but they have not seen the condition or finishes of those houses and the reasons why a house may have even sold for less than the current market value.
• When taking into account the prices of homes sold in your area, base your assessment on the actual price achieved and not the listing price. As properties for sale have not yet sold, the asking prices may be too high.

Contact the SA Property.com Team for an accurate valuation of your home today - simply click here and compete the Valuation Request Form.

Author: Marketing