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Priced to sell – get the right price, by pricing right

5 October 2021 | Insights Team

When selling your home, one of the most important factors to consider is how to competitively price your property to ensure that it will attract the right buyers, achieve a faster sale and realise an optimal selling price. A fine line exists between what a seller hopes their property may be worth to what the market is willing to pay for it. So it is vital to get this right from the get-go. 

How to price correctly

Correctly pricing your property sets market expectations and could eliminate the likelihood of your property languishing on the market for months on end, with no takers. 

Step 1

With the booking of a Leadhome Propertiesvaluation, the following happens:-

  • You will meet your dedicated real estate agent at a convenient time;
  • Your agent will view the property and provide you with obligation-free expertise and selling advice;
  • The following key features of your home will be carefully taken into account; location, size, nearby amenities, condition, recent upgrades and improvements, area growth, competing homes for sale near you, pricing similarity, and so on.
  • A comprehensive industry-leading valuation report will be compiled for you to aid decision-making. This, coupled with your agent’s own industry experience, real estate insights, area knowledge and property expertise will form the basis from which a market-related listing price for your property may be determined.

Step 2

With the signing of our mandate, you will immediately gain access to Leadhome Properties’ powerful digital platform of data science tools, smart technologies and property resources. Bloom, for example, enables homeowners to track their home’s sales performance in the market, anywhere, anytime, manage viewings, and receive instant buyer feedback 24-7 in real-time, with an easy-to-use interactive dashboard. 

Key pricing insights

The Insights Team sat down with Riegardt Momberg, Leadhome Properties’ top estate agent and Team Lead for the Johannesburg North region. We asked Riegardt to share his most valuable pricing advice gleaned over many years of real estate industry experience.

“I always advise my clients that it is far better to go into the market priced competitively and be less negotiable than to outprice themselves in the market in order to leave room for negotiation. You will never successfully conclude a sale if you don’t get feet through the door and attract the right buyers. So it is critical to ensure you put your property into a buyer-rich environment from the start in order to receive the best offers.” 

Riegardt continues: “If sellers prefer to test the market at higher, or even substantially higher prices than those I suggest, then I am happy to do that, but if there is no interest or weak interest in the first two weeks, we need to discuss a price adjustment that is more in line with my initial recommendation. The reason being is that in my opinion, the first two weeks after a property enters the market are the most valuable. So, even if the sellers are not in a hurry to sell, the fact is that the longer a property sits on the market the tougher it becomes to sell. 

Furthermore, if your property is seen to have been on the market for three or four months, for example, buyers assume that there may be something wrong with it and avoid viewing it altogether. Or alternatively, if they do view it, they will take a chance to put in low-quality offers.”

So your first two to four weeks is your prime selling window for maximum traction. This always wanes after the first month with viewings slowing thereafter. Ideally, a property that is correctly priced should sell relatively quickly.”

For more information or to request a valuation, please contact: 

Riegardt Momberg

Johannesburg North, Team Lead, Leadhome Properties

 +27 10 443 9753

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For more valuable advice, insights and information, please visit our Selling & Buying Guides, Leadhome Blog and FAQs

Insights Team

We're the "thinking arm" of Leadhome, combining expertise in data analysis, modelling, sociology, geography, and philosophy to interrogate current trends in the South African residential property market. Proudly contemplative since 2015.

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