So you have eventually decided to move on in life and have made the decision that you need to sell your house. While there are many things that you need to prepare before placing your house on the market, one of the most important would be to determine the right selling price for your house.
Why it is so important to set the right price for your house
Why is the price so important? This is the factor that is most likely to determine how quickly your house will sell or for how long your house is going to stay on the market. Sure, there are other factors that will affect the sale of your property but out of all the factors, price is the most likely factor to determine the success of the sale of your property.
Below are some of the consequences that are associated with a house price that is either too low or too high.
Setting a price too low – an uncommon mistake.
Obviously setting the price of your house too low is a mistake as you are going to lose money. By selling your house at too low a price you could stand to potentially lose thousands of rands that you did not need to lose. Sure, your house will sell very quickly and you will be able to move on with your life but it could be at the cost of thousands of rands to you.
Setting your price too high – the common mistake.
Most people wish to get the best price possible when they sell their house or property. Obviously, you would love to make money on your house and to make as much as possible. However, setting too high a price could seriously hamper the sale of your property and cause you to possibly lose money in the long run.
When you are selling a house the crucial period for selling is within the first 3 months of the property being listed on the market. After this 3-month period, the property tends to become stale and no longer attracts interest from prospective buyers. It is still possible to sell after the first 3 months but most of the impetus has gone.
Often sellers decide that they will set the price of their property high and if it does not sell after a while they will then lower the price. This can be a huge mistake.
Once a property has been on the market for a while prospective buyers begin to notice that the property has been on the market for a long period of time and start to ask themselves why.
In their minds, they are already thinking that there must be something wrong with the property. As soon as the property price gets reduced it has one of 2 effects. First, they reason that there is definitely something wrong as the owner has had to drop the price. Second, they may think that they are going to get a bargain due to someone desperate to sell. These bargain-hunter buyers tend to come to view your property and then make ridiculous offers that you are unlikely to accept.
You may possibly be thinking why would people see the property and notice that it has been on the market for a while and yet they have not made an effort to come view it at the higher price? The answer is simple, possibly the price that you advertised your property at was above their budget and affordability. They still view the houses online but can not afford to act. However, they do take notice.
The next problem that is often encountered is what is termed prostituting your property. Sellers desperate to sell but at a price that is too high often believe that if they get more estate agencies to list the house then they may sell.
If 2 or 3 agencies have had no success in selling your property then it is unlikely that having 15 agencies list your property will change the outcome.
All that will happen is once again prospective buyers will be asking why so many agencies are involved in the sale of the property.
Get professional valuations
Your local estate agent is trained and experienced in property valuations so please ask your agent what the best price would be to sell your property at. If in doubt then ask 2 or 3 different real estate agencies to do a valuation of your property. Once you have realistic valuations on hand then set a selling price for your property taking into consideration that your realistic price needs to include the selling commission for the sales agent.
Standard Bank has an online facility where you are able to get an approximate valuation of your property. It lists a minimum and a maximum price as well as a suggested market price. This is a computerized valuation that provides an estimate based on the current market. However, it is not an accurate valuation but it is a base on which to work.
A far more accurate assessment of your property would come from an experienced local estate agent who would come out in person to your house and value your property.