Six steps to an accurate selling price for your property

Market-related properties can often sell well within a month of coming onto the market, while overpriced properties tend to linger for months, and often result in price changes, and a change of agents.

Samuel Seeff, chairperson of the Seeff Property Group says that six decades of marketing and selling property has shown that overpricing is the primary cause of non-sales. Simply put, the market determines the price. A property’s value is ultimately determined by what a willing buyer is prepared to pay in the current market.

In reality though, sellers generally tend to attach more value to their property which can hinder the sales process. Aspects such as what the seller needs for their next purchase, what they paid for the property, or how much they invested in renovations will have little bearing on achieving a higher price, he says.

Emotional attachment can lead to overpricing, and he advises sellers to view the sale as a business transaction. Setting an accurate asking price is paramount for a successful property sale, as it directly impacts how quickly your home sells and the final price achieved.

An overpriced property often deters serious, well-informed buyers from the outset, leading to prolonged time on the market, the dreaded “stale listing” effect, and often forcing multiple price reductions which can erode buyer confidence and ultimately result in a lower sale price than initially hoped for.

Conversely, an accurately priced home attracts immediate interest, can generate competitive offers and even bidding wars in a strong market, ensuring a swift and profitable transaction while minimizing holding costs and stress for the seller.

There are six important steps to ensuring your price is accurate for the market, he says.

1. Ensure your property is in the best sellable condition, freshly painted and clean. Poor maintenance or distractions will affect the price.
2. Do not overcapitalise when you renovate or upgrade, and always keep upgrades neutral and not overly trendy.
3. Assess the property in terms of what it offers (size, finishes, location, etc.), and in relation to similar properties on the market in the area.
4. Compare only recent selling prices of similar properties sold in the area to evaluate and determine the correct asking price.
5. Consider current market conditions and adjust your price expectations if necessary unless you are prepared to wait for the right buyer.
6. Consider all reasonable offers and leave room for negotiation. Often a deal is made by bringing the two parties to meet somewhere in the middle.

Issued by Gina Meintjes