Keep your head when pricing your home to sell.
Ida du Plooy
Harcourts Dolphin Coast.
“For a man’s house is his castle, and each man’s home is his safest refuge.” – Edward Coke 1628.
In the current political and economic situation more and more people are looking to sell their homes. Whatever their motivation, being it financial or because of an emotional (Death, Divorce or Distress) their attachment to their home makes it hard to value their property objectively.
The majority of people who are ‘self- valuating’ their home, will over value them, not realizing that what they are effectively doing is expecting buyers to over-compensate them. Here are a few reasons why you need a good agent to help you getting closer to the market-related price.
Harcourts Dolphin Coast’s agents are all registered and licensed agents with local knowledge and they are highly motivated to help you with a professional and researched comparative market analysis. (CMA)
“We NEED our Price to buy our next home, otherwise we won’t be selling.”
Working with a qualified and experienced agent you will be guided to sell your property at market value, and not your “wish” price. As your agent, we understand that your price requirement to purchase your future property cannot be calculated into the pricing of your current home. A simplistic comparison is to remember that the price you have sold your old car for, cannot be the same as the price of a brand new car. The same principle applies when selling your home to up-scale. Competitively pricing your house to sell will give you the best opportunity of selling your home in the shortest time so that you will not to lose the new home you would love to purchase.
We will start HIGH and see what offers we get….
This is the most common mistake sellers make. By starting out too high you will assist your competition to sell their home first and not yours. High priced properties attract high price buyers and these buyers know and recognize value. Buyers research the market long before they contact an agent. They would have seen what is on offer on all Internet Property Portals. Experience tells us that buyers are quick to dismiss over-priced properties. You will not receive any offers. To maintain negotiating power it is essential that you work closely with your agent, using market evidence, to price your home as competitively possible right from the start.
I am not in a hurry to sell. I can wait to get my price
As any good agent will tell you, one of the first questions buyers ask is:” How long has the property been on the market?” Buyers often attach a lower value to a property that has been on the market for a long time, whereas they are more likely to pay a premium price when a property is new on the market. Time and perception of value are inseparable. When sellers eventually drop their price, the initial rush and premium price opportunity has long passed. The house has been on the market far too long with little interest and eventually sells for much less than what it is actually worth.
We invested a lot of money when we put in the pool ( Additional capital spent )
A pool (or any improvement made for your own convenience) may make your home more appealing to some, but not to all buyers. For the family wanting the pool, it adds value, but buyers not wanting a pool, will calculate the pool maintenance cost into the equation and drop their price accordingly. Value is only determined by what the BUYER gets out of the property and not what the seller has invested in. Buyers view the property as a complete package, and not as the sum of individual improvements.
We paid more than that when we bought the property a year ago
The property market is driven by supply and demand. When they bought the house, the sellers might have experienced a Seller’s Market – Many buyers- Little stock. BUT, the falling Rand, Junk Status and political instability are factors that overnight can drastically change the property market into a Buyer’s Market – Lots of stock – Few buyers. The only consolation is that the next property you will be buying will also be driven down in price by the same market conditions.
We need to leave room for negotiation
This is true. A realistic margin will be to add 5% on top of the property’s indicated market value. However many sellers add up to 20% on top of the market value, widening the gap between market value and their willingness to drop in price. Buyers know value. They are out there researching and comparing. Over pricing acts as a deterrent to serious potential buyers, and you may end up with no buyer to negotiate with.
Another agent said my property was worth much more.
Good Agents are all enthusiastic and may want to please you by over valuating your house. Often a higher price can be used as a lure to entice you to give them your exclusive mandate. It is advisable to base your decisions on FACTS and never on someone’s opinion. This is where Harcourts Dolphin Coast excels by offering to partner with you to achieve the best possible price in the shortest time possible. At Harcourts we believe in putting people first, doing the right thing, being courageous and having fun doing our job in pricing, listing and selling your property.
Property is our business, but people our passion.
We are looking for Sales Consultants who are ready to take their careers to the next level. If you are ready to take your career to the next level with our like- minded team and a brand that you can trust, e-mail us at firstname.lastname@example.org or call 032 946 2331. At Harcourts Dolphin Coast we are serious about creating success for all our agents.