The main reason why a property does not sell is typically because it is overpriced relative to similar properties or the current market conditions.
Seeff Property Group said that an unrealistic asking price extends the selling timeline which means more days of keeping your home show-ready, extra marketing costs accruing, and potentially missed opportunities on other properties you might be interested in.
“The longer your house sits on the market, the more it can cost you in the long run,” Seeff said.
An asking price on a property that is higher than the current market parameters can discourage potential buyers which can result in overpriced properties sticking around on the property market.
Potential buyers have a specific budget in mind and if your property listing is outside their budget, then buyers will look for a different property.
Buyers actively searching for properties typically have a budget in mind. If your listing falls outside their range, they will simply move on to properties which are a better fit with their budget.
This can lead to a domino effect where the property may appear to be stale to potential buyers, who will have questions as to why it isn’t sold as yet. Eventually, buyers will lose interest and may simply scroll past it.
While an overpriced house might not attract serious buyers, it may attract another type of buyer, buyer who may think there is an opportunity to negotiate a large discount.
Samuel Seeff, chairman, Seeff Property Group said that property sellers should work with their to assess your price against comparable properties which have recently sold in your area.
Seeff said: “Look at properties which are similar in location, size, and overall features and the condition of the property.”
“By aligning your asking price with similar properties which have sold, your property will be better placed to attract buyers who are actively searching in your price range.”
It is crucial that sellers are flexible in terms of the offers that are coming in to allow the agent to negotiate with potential buyers.
According to Seeff, a good agent will quickly spot a good opportunity, and will then use their negotiating skills to bring both parties to a price and deal that is mutually beneficial.
Seeff said: “A realistic price gets your home noticed by qualified buyers, leading to a smoother and faster selling process. Taking another look at your asking price might just be the key to finally getting that Sold sign you have been waiting for.”
Timing the market
While having a realistic price on your property listing, the time period in which you put your property up for sale could also be important.
Cobus Odendaal, CEO, Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg said that real estate markets often follow seasonal patterns.
Spring is typically the busiest season for home sales as homes often look their best with blooming gardens, and families prefer to move in time for kids to start new schools.
“In Summer, the market is still active, but can slow down for a period as people focus on their holidays and then getting back to school or work after the festive season,” Odndaal said.
Autumn is a bit quieter but has steady activity as people settle into the new year and begin to make plans. The slowest season is generally Winter, but serious buyers are still active, and less competition can be advantageous for both buyers and sellers.
According to Odendaal, sellers should consider listing in Spring or late Summer/early Autumn to capitalise on higher demand, while buyers might find better deals in Winter when there's less competition.
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