Pricing your property correctly is more important than ever!
In a challenging time in the economy of South Africa, pricing your property correctly is very important.
Sellers usually have very set ideas about the value of their property based on sentiment, advice from family members and friends or what they need to do with the proceeds. Buyers are often emotional about this, and get very angry with estate agents who are honest about pricing. Unscrupulous agents often play along with the aspirations of the seller in order to get sole mandates. There are common mistakes that should be avoided.
Let’s price it higher to allow for negotiation, we may be lucky – this is a false premise and the closer your asking price is to what the buyers will offer, the sooner you will sell, and the better the offer will be.The longer your house is on the market, the more likely it is that buyers will be suspicious of why it does not sell. “Waiting it out” is never profitable.
Do consider all offers from well qualified buyers. The aspirations of the seller and that of the purchaser need to meet. The interest accrued on the lower offer over time often makes up for the lower selling price.
Get the offer on paper and engage in negotiations rather than rejecting an offer outright. In the current market buyers are concerned about the future as much as you are. It is not about where you start but about where you finish.If your property is outdated the buyers will want to budget for renovations.
Don’t give sole mandates to the agent who tells you what you want to hear. Listen to the people who know your particular market best. A bird in the hand is worth two in the bush.
