Pricing is often the number one reason why properties are just not attracting offers, according to agents from the Seeff Property Group.
Given that the recent interest rate cut should be driving more buyers to the market, especially heading into the warmer months which are traditionally a little busier for the property market, it could be a good time for sellers.
READ: The 4 best ways to find serious buyers for your home
Agents, however, warn that sellers should guard against the temptation of hiking their prices, as we are not yet in a market where prices are rising to any notable degree. The mindset about price can often make or break a sale.
Sellers should therefore trust their agent as far as their advice regarding the price is concerned. There is inevitably a level of negotiation involved before a final sale is concluded, but if the seller is stubborn on the price, it might put the buyer off and sink the deal.
Sellers are best advised to consider the sale of their property as a business transaction. The buyer certainly will be looking at it as a business transaction given the price that they want to pay, and the long-term commitment involved.
It has been proven that setting the price too high will not result in the seller achieving the highest price. It is ultimately the buyers who decide on the value of the property, and what they would consider a fair price. An experienced local agent will have a good understanding of what buyers are looking for, and what they would be prepared to pay.
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Seeff’s agents advise that sellers should avoid these pricing myths:
Setting the price at a high level in the hope of getting a higher price. Buyers are well informed these days. When there are other similar properties on the market, a high price will simply drive buyers to those competing property listings.
Push the buyer for a higher price. If the offer is really too low compared to the sales prices in the area, then there should be room for a counteroffer. If the price offered is in line with the market, then it may put the buyer off.
Start with a high price, then drop the price as a marketing gimmick. This is seldom a good strategy as it may create a negative impression of the property. Buyers are a lot smarter about pricing, and this could be off putting.
Use listing prices as a guideline to set your price. Many properties on the market are overpriced. Sellers should therefore always look at the actual sales prices achieved in the area as a guideline.
Take advice from friends and neighbours. These days, everybody has an opinion about property prices. Many punters put out information about prices skyrocketing which are often not substantiated. Rather use trusted sources.
Keep the home on the market until the right offer comes along. A property that lingers on the market can become stale and overlooked by buyers. If you are serious about selling, price it correctly from the outset to facilitate a sale in a reasonable time.
View quick offers with suspicion. Some sellers may think that if buyers are quick to put in an offer, it might mean that the price is too low. If you are working with a credible area agent, then chances are that they already have a qualified database of buyers ready.
Not considering all offers. Unless the offer appears to be an obvious chancer, sellers should consider all offers, especially if they need to sell in a market with fewer buyers. Agents are skilled negotiators and there is often a deal to be made.
The house is worth more because it is renovated. While keeping finishes updated is always recommended, not all renovations add value. Property owners should always guard against overspending on renovations as these may not always result in more value.
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Tyson Properties shares some boxes to tick when getting your home show house ready:
- Remove all evidence of everyday living – sweep floors, vacuum carpets, clean windows and empty dustbins. Pack away kids’ toys and any washing.
- Bathrooms and kitchens are usually the rooms most under scrutiny - so, make sure counter tops are clear, there are no dishes in the sink and no rings around basins or baths. Air fresheners or diffusers in bathrooms are a must. Also, make sure that there are toilet rolls for guests and that toilet lids are closed.
- Temperature – if it’s a scorching hot day, set the aircons and fans and if it’s chilly, either get the fireplace going or strategically place a heater to warm up rooms.
- Declutter – if you’re selling, chances are you’ll be moving soon, so pack what you can in boxes for storage. Full cupboards suggest there is not enough storage space.
- Depersonalise – this is the best way to help a prospective buyer imagine they can live in your home. In addition to removing photographs and kids’ artwork and shopping lists from the fridge, pack away personal items such as hair and toothbrushes and medication.
- Do some gardening – make sure the lawn is mowed, edges are trimmed and leaves are raked up.
- Pool hygiene – make sure your pool is clean and blue. You could even leave the creepy doing its rounds to prove all is in working order.
- Outbuildings – keep these as neat as your home as buyers will want to see them and don’t want to be confronted by everything that you have removed from the house or greasy and dusty garages!
- Lighting – open curtains to let in natural light and make sure that any dim corners are lit by lamps to create a welcoming ambience.
- Welcoming touches – add fresh flowers or fruit bowls and strategically position potted plants to add a dash of colour. An orchid in the bathroom and neatly folded hand towels can made a good impression.
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