It is important that you appreciate that it is not the Consultant or a Valuer that puts a price on your home, but the market! It is our role to put enough facts in front of you about properties that have sold in the area, to allow you to make a decision. It is crucial that your initial asking price is not out of touch with the market indication of its value, as the best buyers are usually the first to inspect your property at the beginning of the marketing campaign.
Properties usually sell quickly and for the most money when they are priced correctly in the beginning – the crucial early stages of going on the market. Marketing, advertising, signboards, and the like, all contribute to finding a buyer for any property, but in the end it is the price which is the main determinant.
Buyers respond to market value …. Not asking prices.
Overpriced Properties Cost Sellers!
Sellers beware of estate agents overpricing your property in a bid to ‘buy’ a mandate. Whilst a seller’s intent is to achieve the highest price possible, it should also be their appointed estate agent’s intent to achieve the same for their Seller.
Introducing a property to the market place at too high a price that is not in line with the current market, works directly in contrast to the Seller’s (and Estate Agent’s) goal.
Consider the following: a property that enters the market at R200 000 or more above a market related price will be overlooked by the very buyers who should be viewing the property as they will deem it to be out of their affordability range!
Buyers who have the affordability of the inflated price will not put in offers as they have higher expectations and would not find value. Such properties will be on the market for longer than the Mandate period, will likely then go to open market with all estate agencies, most likely will have to reduce their asking price and, by which stage, their property will have become stale and buyer interest would have waned! Think of the costs and inconvenience you, as the Seller, would have incurred and endured being on the market for 4-8 months or more!
Statistics have shown that pricing properties in line with the market achieves a higher sale price. Buyers see the value and are willing to pay the asking price or very close to the asking price. Whereas a property that has been on the market for a protracted period of time, will inevitably have been reduced at least once, if not more; and this leads to buyers putting in low offers, having sensed a now ‘desperate seller’.
Instead of dealing with an Estate Agent’s opinion, a Seller should request their agent to provide a full property report, as well as a Comparative Market Analysis (CMA). The CMA should compare similar properties that have sold in the area, properties that have failed to sell, and those that are currently on the market. The CMA should also provide the price the various properties entered the market, sold at, length of time on the market amongst other details that will be useful in order to reach a conclusion. Data, facts, and reports are more reliable resources to reach a selling price
- Charmaine Powell, Director of Harcourts Synergy