The difference between value and marketability
Friday, September 8, 2017
As a seller you will naturally do whatever you can to maximise on the selling price of your property and it is advisable to familiarise yourself with all the factors that could have an impact before putting the property on the market.
According to Steve van Wyk, Seeff’s Managing Director in Centurion, a property’s value and marketability is not the same thing, but both play a crucial role when price is determined.
“Although there are many things you can do to improve the desirability of your property, some factors like property prices, crime in your area and the interest rate are out of your control and you can’t do much about it”.
Van Wyk says value is the price placed on a property after considering factors like position, the condition and age of the property, servitudes, crime in the area, the size of the property and the stand and extras such as a pool, alarm, irrigation system, lapa etc.
Value is further determined by the price of recent sales in the specific suburb based on the square meterage of the property and the prevalent market conditions at the time such as the interest rate and number of competing properties on the market.
Marketability however is how ready the property is to sell. “When you want to determine the marketability of a property the following questions needs to be asked: Has the property been priced at the correct price, is there a demand for property in that area and is the property in a saleable state when compared to similar properties?
A well-maintained garden for instance is a good way to illustrate the difference between value and marketability. While a presentable garden can certainly make a property more appealing and would probably increase the marketability of it, it would not typicaly increase the value.
Van Wyk concludes that a property is both of good value and marketable when you receive an offer that is market related.
Tips on how to make your property more marketable:
- Keep the garden presentable, mow the lawn, trim the bushes and plant flowers
- Repair anything that could put potential buyers off from buying the property
- Create a good first impression with a neat and tidy house. Make sure the carpets and windows are clean and take care of clutter.