How to Set the Right Selling Price for Your Property

How to Set the Right Selling Price for Your Property
property

First impressions matter. If your home is overpriced when people first see it, chances are good that they won’t look at it again.

Hoping that a buyer will overpay for your home isn’t a strategy, it’s a wish. It is also self-defeating.

This is according to Elaine Chetty, licensee of Seeff Richards Bay, who says as a seller, you naturally want to get ‘top dollar’. The chances are also good that you have a deep emotional attachment to your home. Combined, these factors often lead sellers to insist on a high price.

“Our analysis of website activity shows that new listings get an average of 50 to 60 page views on the day they hit the market. Houses with price drops get only 15 to 20 views,” says Chetty.

“First impressions matter. If your home is overpriced when people first see it, chances are good that they won’t look at it again. We estimate that a house listed for sale gets 3.5 times more web traffic in the first seven days than it does one month later. After the first three days web traffic to existing listings slows by more than 65%. Within three weeks it’s down by 85%,” says Chetty.

In short, she says your home’s debut is its best chance to shine. An overpriced property is more likely to be ignored.

“In this current market, don’t expect a rush of lower offers either; people won’t assume that you’re willing to negotiate,” says Chetty.

“By the time you lower the price, your home will have the taint of being a ‘languisher’, stuck on the market. Fair or not, a home fresh on the market at R1.2 million looks different than one reduced from R1.5 million to R1.2 million.”

Chetty says even if objectively it’s a good home, if it’s been on the market for a while, many buyers will wonder if there’s something wrong with it. Once that stigma is there, it is going to be hard for a seller to get full asking price.

If there has already been a price cut, she says savvy buyers will start circling. This is not a good situation for sellers to be in.

“Remember, most buyers will look at your home on the first day it comes to market – so make that impression count by pricing right. You’ll get more and better offers that way, and you’ll get them sooner,” says Chetty.

“Ensure that you get solid advice from your estate agent to guide you on the ideal price to ask for your property, given the recent sales made in your area.” Property24.com

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