For most people, your home is where your memories are made. Although these memories have immeasurable value, you cannot put a price tag on them. Taking this into account, you must be careful not to price your property subjectively. Pricing your home correctly is the first step towards a successful sale in which you don’t end up disappointed.
Let’s consider 3 Reasons why properties are often overvalued and why these reasons can lead to disappointment:
1. The seller awards the mandate to the estate agent who offers the highest valuation with the aim of securing the mandate. This is the most common reason. Sellers should be aware of this ‘trap’ and should insist on a well researched Comparative Market Analysis (CMA).
2. The sellers feels that their property boasts features of higher value when compared to properties with similar characteristics in the area. Upgrades are not the main deciding factors with buyers, but rather location and size. What might be considered value to you might not have the same value for a buyer.
3. Sellers wish to list higher than the fair market value in order to ‘test the market’. On average, you attract the serious buyers in the first 4 weeks after listing a property. If you are over-priced in the first four weeks you will likely miss the opportunity to attract serious buyers.
Pricing your property correctly is vital because buyers are astute in their research, mainly because their property purchase is of such a high value. They will be very careful to take the time to find a property that best fulfils their expectations and budget. An overpriced property will be compared to other well-priced properties and fall short every time. Furthermore, an overpriced property runs the risk of becoming overexposed which will negatively impact the marketing efforts.
A well researched CMA will ensure that your property is correctly priced from the start and in doing so, attract the right buyers. A CMA consists of information on the subject property as well as similar properties that are for sale, similar properties that have sold, and lastly similar properties that have either expired or have been withdrawn and therefore leading us to the estimate value of the subject property which is both fair and market related.
At 3%.Com Properties we can deliver in 3 key areas to ensure your price is right:
1. We are skilled Attorney Agents who will ensure a CMA is done with our top standards and your best interests in mind.
2. We will make sure to continually assess the market’s reaction to your property and ensure that your property is neither overvalued nor undervalued.
3. We charge a low commission rate (3% plus VAT) to ensure that when your property is priced right, you still get out more compared to other agents who demand higher commissions.
For more information visit www.dlcinc.co.za
𝘛𝘩𝘪𝘴 𝘢𝘳𝘵𝘪𝘤𝘭𝘦 𝘪𝘴 𝘢 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘴𝘩𝘦𝘦𝘵 𝘢𝘯𝘥 𝘴𝘩𝘰𝘶𝘭𝘥 𝘯𝘰𝘵 𝘣𝘦 𝘶𝘴𝘦𝘥 𝘰𝘳 𝘳𝘦𝘭𝘪𝘦𝘥 𝘰𝘯 𝘢𝘴 𝘭𝘦𝘨𝘢𝘭 𝘰𝘳 𝘰𝘵𝘩𝘦𝘳 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘕𝘰 𝘭𝘪𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘤𝘢𝘯 𝘣𝘦 𝘢𝘤𝘤𝘦𝘱𝘵𝘦𝘥 𝘧𝘰𝘳 𝘢𝘯𝘺 𝘦𝘳𝘳𝘰𝘳𝘴 𝘰𝘳 𝘰𝘮𝘪𝘴𝘴𝘪𝘰𝘯𝘴 𝘯𝘰𝘳 𝘧𝘰𝘳 𝘢𝘯𝘺 𝘭𝘰𝘴𝘴 𝘰𝘳 𝘥𝘢𝘮𝘢𝘨𝘦 𝘢𝘳𝘪𝘴𝘪𝘯𝘨 𝘧𝘳𝘰𝘮 𝘳𝘦𝘭𝘪𝘢𝘯𝘤𝘦 𝘶𝘱𝘰𝘯 𝘢𝘯𝘺 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘩𝘦𝘳𝘦𝘪𝘯. 𝘈𝘭𝘸𝘢𝘺𝘴 𝘤𝘰𝘯𝘵𝘢𝘤𝘵 𝘺𝘰𝘶𝘳 𝘭𝘦𝘨𝘢𝘭 𝘢𝘥𝘷𝘪𝘴𝘦𝘳 𝘧𝘰𝘳 𝘴𝘱𝘦𝘤𝘪𝘧𝘪𝘤 𝘢𝘯𝘥 𝘥𝘦𝘵𝘢𝘪𝘭𝘦𝘥 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘌𝘳𝘳𝘰𝘳𝘴 𝘢𝘯𝘥 𝘰𝘮𝘪𝘴𝘴𝘪𝘰𝘯𝘴 𝘦𝘹𝘤𝘦𝘱𝘵𝘦𝘥 (𝘌&𝘖𝘌)