Property Advice

Asking price calculations become ‘hyper-local’

Private Property South Africa
Press |
Asking price calculations become ‘hyper-local’

Once you have taken the big decision to sell your home, the next most critical move is to decide the asking price.

This demands serious thought and attention, says Gerhard Kotzé, MD of the RealNet national estate agency group, because, notwithstanding the recent interest rate increases, incorrect pricing remains the biggest reason for homes remaining unsold.

WATCH : How to price your property right.

"The market has changed for good," he says. "Buyers today are much more knowledgeable about the property market and they’re aware of the power that mortgage pre-qualification gives them. In addition, they are much less location-bound due to the increase in remote working and schooling.

“Consequently, it is no longer sufficient to try and gauge the effect of rising or falling interest rates on the market or demand as a whole, or to count on the desirability of a particular area or even a specific estate to attract buyers.”

Instead, he says, home sellers need the help of experienced property professionals with the latest local information at their fingertips to “fine-tune” their pricing. This means taking account of the particular features of their individual properties as well as the performance of their local markets.

“In addition, they need to do everything possible to improve the appeal of the property prior to putting it on the market, again with the assistance and advice of a seasoned agent.

“We all know that the condition in which a home has been maintained directly affects marketability and pricing, and most don’t require a major overhaul – which would probably not be cost effective anyway. However, it definitely does pay to attend to things like the peeling paint on a garage door, a dirty carpet and a dripping tap.”

Kotzé agrees that it is difficult to do much about location, “but if the house is on a busy street, a wall or hedge can help to block out noise and unwanted views, and the asking price may still need to be adjusted.

"Above all, though, sellers need to be realistic and prepared to work with their agents to make changes according to the initial responses from potential buyers – bearing in mind that the longer a For Sale sign is up, the more suspicious buyers become that there is something wrong with the property and the more difficult it becomes to sell, at any price.”

Writer : Meg Wilson

Related Articles

Buying a distressed property
Sarah-Jane Meyer | 07 Mar 2023

Buying a distressed property

Distressed properties offer an opportunity for a good property deal if you know the pros and cons.

Is buying off-plan still a good way to invest in property?
Pam Golding | 25 Apr 2022

Is buying off-plan still a good way to invest in property?

The property market offers great opportunities to buy off plan? How recommended is this?

Buying property? The 3 questions you’re probably not asking…but should be
Private Property Reporter | 17 Dec 2021

Buying property? The 3 questions you’re probably not asking…but should be

Buying property is a process which involves different stages. Which questions must you ask through this process?

sample image of property alerts

Get instant property alerts

Be the first to see property alerts for your area.
;