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Incorrect Pricing -

The Worst Home Selling Mistake a Seller Can Make

We Want More Money
When the average seller sits down to interview real estate agents, it's easy to get caught up in the excitement over choosing a sales price. More money means more financial opportunities for the homeowner. Perhaps it means the seller can afford to buy a more expensive home, help pay for her child's university education or take that greatly overdue vacation. Unfortunately, uninformed sellers often choose the listing agent who suggests the highest list price, which is the worst mistake a seller can make.

Establishing Value
The truth is it doesn't really matter how much money you think your home is worth.  Nor does it matter what your agent thinks or ten other agents just like her. The person whose opinion matters is the buyer who makes an offer. Pricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value, an educated opinion. This method is the same way an appraiser evaluates a home. And no two appraisals are ever exactly the same; however, they are generally close to each other. In other words, there is no hard and fast price tag to slap on your home. It's only an educated guess and the market will dictate the price.

Is it Too Low?
Homes sell at a price a buyer is willing to pay and a seller is willing to accept. If a home is priced too low, priced under the competition, the seller should receive multiple offers to drive up the price to market value. So there is little danger in pricing a home too low. The danger lies in pricing it too high and selecting your agent solely on opinion of value.

How It Starts To Go Wrong
We know of a seller of a home that didn't even interview real estate agents. She plucked the first one off the Internet because, "He looked like such a nice guy." He priced her home at R1.3 million. This agent never heard the local agents chuckling behind his back because he worked in a different suburb. After 90 days, the house was still not sold.

Continues To Go Wrong
The next agent, also from another area, suggested to sell the home at R1.1 million. Months passed. Eventually the price dropped to just under R900,000. Still no takers. A few lookie-loos, but no serious buyers.

More Than a Year Later
By the time the last agent was hired to sell this home, the seller had grown weary and exhausted. It was now 12 months later. Together, the seller and the agent priced the home at R695,000. It immediately sold for all cash. The sad part is the comparable sales in the neighbourhood fully justified a price of R835,000, but the home had been on the market for too long at the wrong price, and now the market had softened.

Protect Yourself
The question is how much money have those houses that don't sell cost the sellers? The financial loss often exceeds the extra mortgage payments paid and goes beyond the uncompensated hassle factor of trying to keep a home spotless during showings. It affects the rand value that a buyer ultimately chooses to pay because it's not a fresh listing anymore. It's now stale, dated, a market-worn home that was overpriced for too long. Don't let it happen to you. Don't be that seller of an overpriced property.  Price it right to get it sold.


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Call Centre Numbers 012 661 5144 012 661 3685 012 661 2102

We place a strong focus on safe and secure properties in various security estates. 
Our specialty is Centurion townhouses and houses.
Properties for sale R450000 to R6 million. 
Rentals R4000 to R25000 per month.