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SPONSORED: Establishing Value When Selling Your Home

SPONSORED: Establishing Value When Selling Your Home

The purchase of a residential home, at any price, is both an emotional and business decision. The decision to purchase is driven by emotion, while the purchase price is tied to both emotion and market data.

The variables that determine the valuation of a home include: the location, the area, the age, the condition, the architectural design and flow, the size of the stand, the size of the dwelling, number of different rooms and amenities, the finishes, the view, the garden areas, the security of the area and the security surrounding the home. Each of these variables has a different subjective value to different buyers. Some buyers might value the finishes, where others may find value in the view. Even where two different buyers value the view, they normally have different perceptions of value for the view.

Given work and family commitments, buyers can only view a limited number of homes on the market. Selective viewing interest will be given to homes that seem appropriately priced and it is very common for buyers to view only 10% of the homes in their price range before making an offer. It is strongly recommended that sellers, to ensure that their homes form part of the small percentage that is viewed by the buyers in the marketplace, market their homes at the minimum price they are prepared to accept. Marketing the home at a higher value expecting the buyer to make a low offer simply takes the home out of the buyer’s consideration.

Logical reasoning supports the fact that, inexperienced and ill-equipped agents are left with little option but to sell an over inflated promise on price, as they will usually lack any other evidence of their ability to deliver on a promise, their intention being to lock the seller into a Sole Mandate, solely to prevent competing agents from working on the property. Inflated prices advertised often give the public unjustified confidence in property consultant delivery skills, as prices advertised are rarely achieved.

Years of independent market research have indicated that there is a direct correlation between the percentage difference in asking and selling price and time taken to conclude the sale of a property – the higher the difference, the longer the time taken to sell. It is not unusual for a property that is 30% overpriced, to take an entire year to find the right buyer. However, appropriately priced properties can sell within a few weeks of them coming onto the market.

As it is a common mistake to think that advertised prices are achieved, it is worthwhile to ask your property consultant to disclose the actual selling prices of properties in your area. Over-evaluating your home can result in: – Prospective buyers being lost to more appealing comparisons – Realistic offers being eliminated – Extended marketing time and inconvenience- Your home becoming “stale” on the market – Your sale becoming urgent making substandard offers become more appealing – Your home being used to sell every other home in the area.

Sotheby’s International Realty® property consultants are committed to negotiating the highest net market price, in the shortest period of time without compromising the integrity of your home when appointed by you to market and sell your home.

Get in touch: 
Lew Geffen Sothebys Realty Durban North & Umhlanga
20 Solstice Road, Gateway, Umhlanga Rocks
Office: 031 566 5150
Fax: 086 620 0410
Web: www.sothebysrealty.co.za

 

Get It Magazine (Ballito/Umhlanga) – December 2017 – January 2018


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