Home pric­ing: Why be­ing re­al­is­tic is key

Lesotho Times - - Property -

ONCE you have de­cided to sell your home, you will prob­a­bly have a value in mind, and chances are once you speak to a real es­tate agent, your value will dif­fer from the agent’s sug­gested price.

“This is a stum­bling block that hap­pens time and time again,” says Yn­nis Will­son, Sales Man­ager at Jawitz Prop­er­ties Rand­burg. “If only sellers could see that an agent’s sug­gested price is put for­ward purely to help them sell their home as ef­fi­ciently as pos­si­ble, and for the best pos­si­ble price.”

Will­son says your home will “nat­u­rally be more valu­able to you be­cause of all the time you have spent liv­ing there, the mem­o­ries you have made, and of course the in­vest­ments made into the property”.

How­ever, she cau­tions sellers that the value they place on your property may be un­re­al­is­tic and there­fore not at­tract buy­ers who look for fair mar­ket value.

“As agents, we sug­gest a mar­ket re­lated price that is at­tain­able. You don’t have to lis­ten to us, but chances are if you list your home for a price much higher than rec­om­mended, your property may sit on the mar­ket for a long time, and the longer a property sits on the mar­ket, the less its value is per­ceived to be,” says Will­son.

Sellers need to be aware that buy­ers no­tice ‘for sale’ signs, they are on­line mon­i­tor­ing list­ings and com­par­ing ask­ing prices.

“It will be ev­i­dent if your home sits on the mar­ket for a long time, as well as if it seems over­priced com­pared to sim­i­lar homes in the area — if the price of your home is in line with cur­rent mar­ket sen­ti­ment, it can spark a bid­ding war, which will ul­ti­mately lead to a higher sell­ing price,” says Will­son.

It is not re­al­is­tic, how­ever, to hope for a higher ask­ing price than your home is worth, she says, par­tic­u­larly in to­day’s econ­omy.

“While trans­fer duty changes in the Na­tional Bud­get this year have pro­vided some re­lief, it is still very costly for buy­ers to qual­ify for a bond and to cover all the ad­di­tional ex­penses that come with pur­chas­ing a property.

“You need to be re­al­is­tic about buyer af­ford­abil­ity.

“If a home has the right price, you will at­tract the right buyer,” says Will­son.

She says your agent is best po­si­tioned to pro­vide you with ac­cu­rate in­for­ma­tion re­lat­ing to what has sold re­cently and how it com­pares with your home. It doesn’t help to look far back. What counts is the re­cent past as to where the mar­ket is.

“It is best to take your agent’s ad­vice from the begin­ning when it comes to pric­ing,” says Will­son.

“Rather be re­al­is­tic from the ‘ get go’ to avoid still wait­ing for an of­fer after many months on the mar­ket be­cause you priced your property too high.”

IT is best to take your agent’s ad­vice from the begin­ning when it comes to pric­ing.

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