Price your home right and capitalise on your window of opportunity
Category Advice
Those who are selling their home will soon come to realise the importance of pricing it right so that it corresponds with market related prices. However, many sellers fall into the trap of pricing their home too high as they believe that this will allow for negotiations with potential buyers or help generate the highest possible returns. Unfortunately, this outcome is rarely achieved as a high price tag often results in a home languishing on the market for a long time, and out of desperation, many sellers find themselves eventually agreeing on a price well below the market value.
On the opposite end of the spectrum, the correct price will not only help you generate good returns, it will also help you achieve a quick sale. This is because home buyer behaviour trends reveal that realistic pricing can stimulate demand and competition among buyers, and this results in increased viewings in the first few weeks.
It is important to note that arriving at the optimum selling price takes careful consideration and a clear understanding of the current market conditions. Before we explain the best practices to follow to price your home right, consider the following statement by former CEO of JCPenney, Ron Johnson:
"Pricing is actually pretty simple...customers will not pay literally a penny more than the true value of the product."
Although Johnson was referring to the retail sector when he said this, the statement also holds true for the real estate industry. As a seller, the price tag you place on your home needs to be realistic, accurate and market related so that it will have a fair chance to compete with other comparable properties for sale in or around your area.
In fact, adopting this sentiment is more important now than ever before due to the expansion of the internet which provides home buyers with the tools to extensively research and understand market prices before committing to a purchase decision. Furthermore, South Africa is experiencing a buyer’s market as supply is outstripping demand. In these conditions buyers have an array of property options to choose from that match their location, budget and size. With such competition, pricing your home correctly can make all the difference in the success of your sale.
Trends reveal that your home needs to capture the market typically within the first two weeks of its release to the market. Knowing this, how do you price your home right so that it makes a positive impression during this crucial window of opportunity?
Seek a professional
When you begin the process, it is imperative that you partner with a reputable real estate agent whose in-depth knowledge of the market and invaluable know-how will guide you to finding your ideal price tag. Although, it is advisable to do your own market research, an agent will provide you with resources such as a comparative market analysis, which will help you set your price according to similar homes sold in your area. However, it is important to note that although an agent will provide professional advice and tools to help you with this decision, it is not their responsibility to set the price. The agent will only provide a price that could realistically sell your home by taking into consideration comparable homes sold and/or selling in your area and the current market conditions. It is ultimately, up to you to make the final decision.
If you seek guidance when deciding on the optimum selling price for your home, we at De Lucia Group can help you. We have honed our expertise to ensure accurate pricing recommendations.
Author: De Lucia Group
