•HOW DO I DETERMINE THE BEST PRICE FOR MY PROPERTY? By using the Comparative Market Analysis prepared by a registered Estate Agent. This will show the prices of properties similar to yours which recently sold, as well as current listings that are in competition with your property. Take into consideration that there is a difference between the prices at which properties are advertised and for what they are actually being sold.
• IS THERE ONE MAJOR FACTOR THAT DECIDES PRICE? Most recent sales indicate the true current market value of property in your area. Market value is what a buyer has been prepared to pay for the property and what a seller has been prepared to sell it for. In an ‘’informed’’ or buyers’ market, potential buyers are highly aware of whether a property is good value against its competitors.
• DOES TIME ON THE MARKET AFFECT SELLING PRICE? Most definitely! If a property is listed at a competitive (realistic) price, sale is likely to happen in the first 4 weeks and likely to be very close to the listing price. Statistics indicate that, usually, the longer a property takes to sell, the lower the eventual selling price.
• SHOULD I PRICE MY PROPERTY HIGH AND TEST THE MARKET? No. The first 4 weeks in the market are the most important when marketing. The buyers and the agents will immediately notice a new listing. If it is priced too high, they will dismiss it. Should there subsequently be a price reduction, it may be too late.
• HOW CAN OVER-PRICING MY PROPERTY ACTUALLY BE A DISADVANTAGE? The longer the property is on the market the more it becomes “shop worn “in the eyes of buyers and agents. The assumption arises that if it doesn’t sell, there is possibly something the matter with it. Buyers may also think that sellers are desperate and thus put in a low offer, if they do at all. As a seller you may also start feeling desperate and be inclined to accept a lower offer than what your property is worth.
• WHAT IS “AGENT-SHUNNING”? Buyers each have a price range within which they want to, or can afford to buy. Agents qualify buyers to establish this range, and then show them properties in that price range. If a property has a market value of R1 850 000, but is priced at R1 940 000, they may be inclined not to show those properties to those buyers who qualify to buy at, for example, R1 890 000. This may exclude those buyers from making a comparative assessment of what value is available and disqualify them from the opportunity to get good value for money.
• DOES THE COST OF MY IMPROVEMENTS EQUAL WHAT I CAN GET FOR THEM? An improvement to your property that enhances your particular lifestyle will not necessarily add equal value to the property in a prospective buyer's eyes. When making improvements to your property, keep in mind what a next buyer would probably also need or like in the same area.
• WHAT IF I NEED A CERTAIN AMOUNT OF MONEY TO BE ABLE TO SELL? Unfortunately a seller’s financial needs or wishes are not related to the market value of a property and are of no interest to the buyer.
• I HAVE SOME EXPENSIVE NON FIXTURES IN THE PROPERTY. SHOULD I INCLUDE THEM IN THE PRICE? Not usually. If, for example, the custom-made curtains or the dishwasher are included in the price and the buyer does not really need or want them, he/she will not add what these non-fixtures are worth when putting in an offer.
• SHOULD I MAKE ANY INVESTMENT INTO THE PROPERTY BEFORE I SELL? Yes! Buyers' 1st impressions are extremely important. They expect a model property. For a property to be presentable your investment need not be very expensive. When preparing your property for sale, try to present your property to as broad a market as possible, so as to appear to as many tastes as possible This means ensuring good ‘’curb appeal’’ and neutral colours and furniture. Your exotic tastes, even if very expensive, will not add value to the property. It may, in fact, detract from it. If this means that you have to paint where necessary, this may be a small investment for a good return. Also, ensure that everything is in good repair. If not, fix it! Fix anything that needs it, e.g. a leaking tap. Buyers will exaggerate the cost of repairs, which could affect the value of their offer.
• DO I REALLY NEED TO KEEP THE PROPERTY CLEAN AND TIDY FOR THE DURATION IT IS ON THE MARKET? Yes! Buyers generally look for an excuse NOT to buy a property so that they can quickly get to a shortlist from which they will finally choose. If you have tenants in the property, consider giving them reduced rental for the duration of the marketing period in exchange for keeping the property clean and tidy. It will pay in the long run.
• WILL THE CURRENT HIGH CRIME WAVE HAVE AN ADVERSE EFFECT ON THE PROPERTY MARKET? A property will sell in any market provided that it is properly priced and professionally marketed. The market may be slower in an area that is known for high crime statistics, but the well-priced and presented properties will have the greatest likelihood to be the first to sell.
• AND IF SOME AGENTS OFFER ME A LOWER COMMISSION? Like anything else in this world, you get the VALUE you pay for.
