Homeowners that are selling their property may be frustrated if their properties are taking a long time to get off the market, but there are a number of reasons why their properties may not be gaining traction among potential buyers.
The recent interest rate cut should be driving more buyers to the market, particularly as South Africa heads into the warmer months, which are traditionally a little busier for the property market, it could be a good time for sellers, according to agents from Seeff Property Group.
However, agents warn sellers against falling into the temptation of hiking their prices, as the market is not yet in a place where prices are rising to any notable degree. The mindset about price can often make or break a sale.
Property sellers are advised to consider the sale of their property as a business transaction. Buyers will be looking at it as a business transaction, given the price that they want to pay as well as the long-term commitment involved.
It has been proven that setting the price too high will not result in the seller achieving the highest price as it is the buyer who ultimately decides on the value of the property, and what is considered a fair price.
An experienced local agent will have a good understanding of what buyers are looking for, and what they would be prepared to pay, therefore, sellers should trust the advice of their agent regarding the price of the property.
There will be a level of negotiation involved before the sale is concluded, but if the seller is stubborn on the price, the buyer may be put off the sale which could sink the deal.
Seeff’s agents share pricing myths that sellers need to avoid.
Setting the price at a high level
Buyers are well informed these days. This means that if there are are similar properties on the market, a high price will simply drive buyers to those other property listings.
Push the buyer for a higher price
According to Seeff, if the offer is really too low compared to the sales prices in the area, then there should be room for a counter-offer.
Start with a high price, then drop the price as a marketing gimmick
This is seldom a good strategy as it may create a negative impression of the property. Homeowners need to keep in mind that buyers are a lot smarter about pricing.
Use listing prices as a guideline to set your price
Sellers should always look at the actual sales prices achieved in the area as a guideline, as many properties on the market are overpriced.
Taking advice from friends and neighbours
Nowadays, everybody has an opinion about the price of property, therefore, homeowners should use trusted sources instead of falling for false information about sky-rocketing prices.
Keep the home on the market until the right offer comes along
Seeff said that a property that lingers on the market can become stale and be overlooked by potential buyers. If homeowners are serious about selling their property then they should price it correctly from the outset to sell it within a reasonable time.
View quick offers with suspicion
According to Seeff, some sellers may think that if buyers are quick to put in an offer, it might mean that the price is too low.
“If you are working with a credible area agent, then chances are that they already have a qualified database of buyers ready,” Seeff said.
Not considering all offers
Unless the offer appears to be an obvious chancer, property sellers should consider all offers, especially they are trying to in a market with fewer buyers.
The house is worth more because it is renovated
While keeping finishes updated is always recommended, not all renovations add value to the property.
Property owners should be cautious against overspending on renovations as these may not always result in more value when they are trying to sell.
IOL Property