Samuel Seeff, chairman of the Seeff Property Group, says that six decades of marketing and selling property have shown that overpricing is the primary cause of non-sales. Simply put, the market determines the price. A property's value is ultimately determined by what a willing buyer is prepared to pay in the current market.
The Importance of Accurate Pricing
Overpricing is the primary reason why properties do not sell. The market ultimately determines value, and a property's worth is set by what a willing buyer is prepared to pay. Sellers often attribute higher value to their property due to factors like their purchase price, investment in renovations, or personal needs, but these factors have little influence on achieving a higher sale price.
Emotional Attachment and Its Impact
Emotional attachment can lead sellers to overprice their homes. It is advised to approach the sale as a business transaction. Setting an accurate asking price is crucial, as it affects both the time a property spends on the market and the final sale price.
Consequences of Overpricing
An overpriced property tends to deter serious, well-informed buyers from the beginning. This can result in extended time on the market, a "stale listing," and multiple price reductions, which erode buyer confidence. Ultimately, this often leads to a lower sale price than originally anticipated.
The Benefits of Accurate Pricing
When a home is accurately priced, it attracts immediate interest and may generate competitive offers or even bidding wars in a strong market. This approach ensures a swift, profitable sale and reduces both holding costs and seller stress.
Six Steps to Achieve the Right Asking Price
- Ensure your property is in the best sellable condition—freshly painted and clean. Poor maintenance negatively impacts price.
- Avoid overcapitalising during renovations or upgrades. Keep upgrades neutral, not overly trendy.
- Assess your property’s features (size, finishes, location, etc.) and compare to similar properties on the market in your area.
- Base your asking price on recent selling prices of similar properties in the area.
- Consider current market conditions and adjust your price expectations if necessary, unless you are prepared to wait for the right buyer
- Consider all reasonable offers and leave room for negotiation. Often, a deal is made by bringing the two parties to meet somewhere in the middle.
(Contact the Seeff Mossel Bay Property Specialists for all your Property needs – Tel: 044 690 4477 / 044 698 1677 or 044 620 2737)
