Prop­erty mis­con­cep­tions de­bunked

Lesotho Times - - Property -

WHEN it comes to selling a home therere is no short­age of ad­vice from a num­ber of sources, such as fam­ily and friends. How­ever, r, be­ing given a lot of in­for­ma­tion doesn’t nec­es­sar­i­lyessar­ily mean that it is the right in­for­ma­tion.

Ac­cord­ing to Adrian Goslett, Re­gion­alonal Di­rec­tor and CEO of RE/MAX of South­ern­hern Africa, re­ceiv­ing ad­vice and in­for­ma­tionn from so many dif­fer­ent sources can lead to un­cer­tainty about cer­tain key as­pects off the prop­erty sales trans­ac­tion.

He says in today’s age of tech­nol­ogy there is a vast amount of in­for­ma­tionn at a con­sumer’s fin­ger­tips, but hav­ingng ac­cess to in­for­ma­tion and de­ter­min­ing what can be trusted are two very dif­fer­ent thing­sh­ings en­tirely.

“It is not al­ways easy to de­ter­m­i­nee what in­for­ma­tion and ad­vice should be heldd onto and what to ig­nore. As a re­sult therere are sev­eral mis­con­cep­tions that have made their way into the mar­ket­place,” saysys Goslett.he pro­vides a few truths and facts s to de­bunk the mis­con­cep­tions and steer sell­ersellers in the right di­rec­tion:

1.Mis­con­cep­tion: Sell­ers de­ter­minene the home’s selling price

While sell­ers will have a say in set­tingt­ing the home’s ask­ing price, the selling price e of the prop­erty is largely based on the mar­ketket and what buy­ers are pre­pared to pay,” saysys Goslett.

It is important that the ask­ing price e of the home is what is con­sid­ered to be a fairair mar­ket value based on key el­e­ments suchh as the home’s size, con­di­tion, lo­ca­tion, the cur­rentt prop­erty mar­ket con­di­tions and the selling prices of com­pa­ra­ble homes in the area.

“It is ul­ti­mately the seller who will have the fi­nal say as to what the home is listed for, how­ever it is important to note that the ini­tial ask­ing price and the ac­tual selling price of the prop­erty could be vastly dif­fer­ent,” says Goslett.

2.Mis­con­cep­tion: Pric­ing the home above mar­ket value will leave ne­go­tia- tion room

Over­pric­ing a home does two things: it chases po­ten­tial buy­ers away and makes other homes in the area look like a bargain, says Gose­lett.

A seller may feel that they are giv­ing them­selves some cush­ion­ing dur­ing the ne­go­ti­at­ing process, but in ac­tual fact, over­pric­ing has the op­po­site ef­fect be­cause it turns buy­ers away and the deal never gets to the ne­go­tia- tion stage. If buy­ers have done their home­work and re­searched home prices in the area, they will recog­nise an over­in­flated ask­ing price and will likely by­pass tak­ing a second look at the prop­erty.

A Ac­cord­ingdi to GoslettG l thereh might ihbbbe buy­ers who can af­ford to pur­chase the prop­erty for its fair mar­ket value, but over­look the prop­erty if it is listed for too much.

There is also the mat­ter of buy­ers who can af­ford the in­flated price, but soon re­alise that home may not com­pare to oth­ers in a sim­i­lar price bracket.

Over­pric­ing will lead to the alien­ation of buyer pools, which can re­sult in the prop­erty sit­ting on the mar­ket for longer than it should, and ul­ti­mately selling for less than it should,should he says.

3.Mis­con­cep­tion:3.Misc There is no need to spend money on the prop­erty be­fore selling

There is a mar­ket for buy­ers who are look­ing for a h home they can fix up or ren­o­vate them­selves selves, how­ever Goslett says most buy­ers want a home that they can sim­ply just move into.

“The “There is no need to com­pletely up­date the home, but it will be eas­ier to sell a prop­erty that is aes­thet­i­cally pleas­ing and well main­tained tained. This could be merely a mat­ter of a coat of pain paint and a few mi­nor re­pairs,” he says.

“It w would be ideal to have any ma­jor re­pairs done b be­fore the home is placed on the mar­ket, but th the ex­tent of what is done to the home will de­pen de­pend on the buyer’s fi­nan­cial po­si­tion and timef time­frame. If any de­faults are found dur­ing an in­spec­tion, the seller can then dis­cuss op op­tions with the buyer re­gard­ing ad­dit tional re­pairs or drop­ping their ask­ing price,” says Goslett.

4.Mis­con­cep­tion:4 Ren­o­va­tions and home­hom im­prove­ments pay for them­selves when you sell

AlthoughAlthou cer­tain ren­o­va­tions and home im­prove­mentsprovem will add value to the prop­erty, very f few ren­o­va­tion projects will provide a com­plete­com­ple pay­back on the money in­vested.

Goslet­tGos says be­fore em­bark­ing on any project, it is important to get ex­pert opin­ions on what should be fixed or changed and what kindki d of re­turn can be ex­pected as a re­sult.

“De­bunk­ing mis­con­cep­tions and know­ing the truth about selling will help home­own­ers to get the most out of their prop­erty trans­ac­tion,” says Goslett.

“It is al­ways best to take ad­vice from a trusted source that can provide ac­cu­rate and help­ful in­for­ma­tion. If ever in doubt, sell­ers should seek out the coun­sel of a rep­utable real es­tate pro­fes­sional who will be able to guide them in the right di­rec­tion.”

— Prop­erty24

While sell­ers will have a say in set­ting the home’s ask­ing price, the selling price of the prop­erty is largely based on the mar­ket and what buy­ers are pre­pared to pay.

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