As the property market continues to fluctuate, homeowners may find themselves uncertain about pricing their homes correctly when it comes time to sell. Pricing a home too high can be one of the most common—and costly—mistakes. According to real estate experts at RE/MAX of Southern Africa, there are a few critical signs that indicate a home may be overpriced.
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa explains that overpricing can not only delay the sale of a property but can ultimately result in a lower sale price than initially anticipated. “A well-priced home typically generates interest within the first few weeks it’s listed. When a home sits on the market for too long without attracting offers, it’s usually an indication that buyers are finding better value elsewhere,” says Goslett.
To help sellers identify that their property might be overpriced, RE/MAX of Southern Africa shares the top three warning signs…
Low or no buyer interest
If your home has been listed for several weeks without much interest, this is a primary indicator that potential buyers are finding other properties more attractively priced. Buyers often use online platforms to compare properties, and an overpriced home will quickly lose appeal. When potential buyers aren’t even booking appointments to view your home, this could mean they’ve ruled it out based on price alone.
Feedback from buyers
Sometimes, potential buyers will provide feedback to the agent, which is invaluable. If they’re consistently commenting on the price as a deterrent, take it seriously. Buyers today are well-informed, and if they feel the home is overpriced, they will probably avoid negotiating altogether.
READ: Benefits of real estate agents for buyers and sellers
Comparable sales in your area
If similar homes in your area are selling faster or at lower prices, it’s time to reassess. Buyers will be aware of the market trends in your neighbourhood, so setting a price that is far above comparable properties will discourage interest and could lead to longer listing times. Speak to your real estate agent because they will know not only what similar properties were listed at, but also what they actually sold for.
What to do if your home is overpriced
If you notice any of these signs, Goslett suggests that it may be time to revisit your pricing strategy. “Working with an experienced real estate agent is crucial in this regard,” he says. “They can share invaluable advice around how to adjust the price to attract a serious offer. Reducing the price multiple times in small increments may signal desperation to buyers, which can work against you. Instead, it might be better to make one significant reduction to hit a new price bracket, which can open your property up to a fresh pool of buyers who may not have seen it previously,” he recommends.
While it is possible to correct the mistake if the home is overpriced, the best strategy is to get the listing price right from the very start. “Homes receive the most attention in the first few weeks after being listed, that’s why getting the price right from the start is so important. When putting your home on the market, be sure to lean on the advice of your real estate agent to give yourself the best opportunity to sell the home for full value,” he says.
READ: Tips: 3 ways to stay on budget when renovating your home
Seeff’s agents highlighted some cost-effective improvements which can increase the value and make the property more attractive to buyers. (click here to read the full article)
Repainting. New modern colours such as grey, green and even black are all the rage right now, but it does not have to be as dramatic as that. Even just upgrading the exterior and interior in new paint tones, albeit fairly neutral, can add value and could spark buyer interest.
Floors and tiled areas. Floors can be modernised with wooden or laminate flooring, or feature tiles in the latest trends, or new carpets. Wall tiles can also be replaced to give an instant update to the appearance of the kitchen and bathrooms.
Kitchen and bathrooms. If you are unable to do a complete remodel, consider cosmetic upgrades such as painting the cupboards, fitting new handles, adding open shelves, a new stove and appliances, new bathroom fittings, new mirrors and new towels.
Doors and bedroom cupboards. Another cost-effective way to upgrade is to change the door and cupboard handles given that there is now such a wide choice available. If the cupboards are old, you can repaint and modernise rather than replace.
New lighting and window coverings. You can also consider upgrading exterior and interior lighting to modernise the home. Upgrade your curtains or add American shutters or wooden blinds. You could also change from kirsch rails to rods to give it a modern touch.
Convert your patio into a braai room. If you have a patio, consider enclosing it and adding a built-in braai, and sliding or stacking doors to open it to the garden. This will enable you to enjoy year-round braai get togethers regardless of the weather, and add value.
Update the garden. Aside from general maintenance, you can add outdoor pots, or paint your pots or old garden furniture to give it a new lease on life. Adding pathways and garden décor can add interest to the garden.
READ: 5 improvements to consider to maximise the value of your investment property
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