Today’s buyers have easy access to a wealth of information and so they are well educated regarding the residential property market, and do their homework before making a purchase.
The correct market related price will ensure that your home is priced to sell. This is established by doing a comparative market analysis of similar homes sold recently in your area. And to get the best selling price, you will also need to pay attention to the preparation of your house to ensure it is appealing and well-presented within its price bracket before the sale. In this way, one aims to present potential buyers with the ‘best buy’ in terms of value in your price band and area.
This is particularly relevant in the current market, as stocks in popular or high demand areas are in short supply, which means that buyers are literally waiting to see what new stock comes onto the market. This makes correct pricing crucial as the buyer pool is in action in the first two weeks of the mandate being listed and launched to the marketplace, so if you don’t capture that market then you’ve lost those buyers. And the last thing you want is for your property to sit on the market for a lengthy period and then become ‘stale’, as today’s buyers are savvy and know when a home is over-priced or remaining unsold.
It’s true that every property has more than one price. Firstly, what the seller thinks it is worth, what the agent values it by using the comparative market analysis, what the buyer is prepared to offer, and then the final settlement price.
As a guideline, one needs to take the following factors into consideration.
- What you paid for your home has nothing to do with its present value.
- The price you would like to achieve for your home doesn’t control the asking price.
- The value other agents put on your property is not always accurate.
- What a valuator says your home is worth doesn’t determine the price in the market.
- The current market determines the value of your property.
Bear in mind that if your property is over-priced, it loses prospective buyers and eliminates offers, and also limits financing which can eventually lead to a lower price.
There is a misconception that multiple agents for a property will result in a quicker sale. This is not the case, as agents prioritise stock which is marketed on a sole mandate - a method which is most likely to achieve a better price for the seller. For example, we’ve just sold a property on sole mandate for full asking price as the home was correctly priced and as a result we had three buyers competing for it, which served to drive up the price. Where multiple agencies have listed a property the seller is at a disadvantage as the agents compete with one another for the quickest sale to the detriment of achieving the best market-related price for the seller.
Contact Pam Golding Properties KZN 031 2075584