The Truth About Property Pricing: How to Sell Smart in Today’s Market
Selling a property involves various pricing factors: the price the seller wants, the listed price, the council valuation, the probable selling price, and the buyer’s offer. Setting the right asking price can be challenging, especially if you have emotional ties to your home. However, personal investment, renovation costs, and sentimental value do not determine market value.
To price objectively, a real estate agent uses a Comparative Market Analysis (CMA), comparing similar properties in the area. A correctly priced property sells faster and at a better price, whereas an overpriced property lingers, often selling for less after multiple reductions.
Factors Influencing Property Sales
- Location – One of the most critical factors affecting value.
- Property Condition – Well-maintained homes attract buyers more quickly.
- Market Conditions – Buyer demand and economic factors influence sales.
- Sale Terms – Sales linked to property chains can complicate transactions.
- Negotiability – A seller’s willingness to negotiate affects buyer interest.
- Motivation to Sell – Urgency can impact pricing and sale strategy.
- Choice of Agent – Sole mandates often lead to better results.
Key Considerations in Property Pricing
- Buyers determine value, not sellers.
- Market-educated buyers recognise fair pricing.
- An overpriced property discourages interest.
- Most properties attract the best offers in the first four weeks.
- Overexposure leads to price reductions and lower final sales.
- Interest and correct pricing sell homes – not just time.
Advantages of Correct Pricing
- Attracts the most motivated buyers.
- Ensures a quicker sale.
- Keeps agents engaged and enthusiastic.
- Results in higher and more realistic offers.
- Maximises the final selling price.
The Risk of Overpricing
Some agents may suggest an inflated price to secure your listing, only to later reduce it. Choosing an agent based on a high listing price alone can be a costly mistake.
Overpricing leads to:
- Fewer Prospects: Informed buyers dismiss overpriced listings.
- Extended Time on the Market: Prolonged listings lose appeal.
- Negative Perception: Repeated price drops suggest hidden issues.
- Overexposure: Frequent re-listings make properties appear undesirable.
The Role of Emotions in Real Estate
Property investment is not purely financial; emotional factors influence decision-making. Sellers often believe their home is special, which can lead to unrealistic pricing. However, the market determines the final price, not personal attachment. Sellers must adopt a financial and strategic approach when pricing their homes.
Expert Insight from Property.CoZa
MJ Dafel, CEO of Property.CoZa South Africa, emphasises the importance of realistic pricing:
“Accurate property pricing is critical in any market. Sellers who price their homes competitively attract serious buyers and achieve better outcomes. Overpricing only leads to extended market time and lower final sale prices.”
Why You Need a Real Estate Agent
- Market Expertise: Agents provide CMAs, considering market trends and comparable sales.
- Objective Pricing Advice: They help sellers set realistic asking prices.
- Sales Strategy Guidance: An agent ensures effective marketing and buyer engagement.
In a buyer’s market, realistic pricing is essential for a successful sale. Partnering with an experienced agent ensures your property is positioned correctly, attracting serious buyers and achieving the best possible price.
