Five Symptoms That Indicate Your Property Is Overpriced

Having a property that just does not sell is incredibly frustrating! You have employed 10 agents to do the job, but the buyers are nowhere to be found. Why is this? 

Just like every parent believes their child is extraordinary, home owners often also believe their property is the best home on the market and should therefore justifiably be sold at a higher price. Unfortunately, it doesn’t always work that way and often home owners wait for months or years before the property finally sells - if at all.

In the current buyers' market, the risk of an overpriced home isn’t simply that you won’t get your asking price – there is also a risk of potential buyers that never even get drawn to view the property. An unreasonable price often stigmatizes the property and causes potential buyers to simply pass it by.

Soon after a property is listed on the real estate portals, major activity occurs around the newly listed property. This initial hype slows down after the first month and within three to six months, the property becomes an old listing that gets filed along with the other forgotten properties in the junk drawer.

Just because owners may have had a thing for exquisite showers and spent thousands of rands to install them in all bathrooms, does not mean a house will sell for R100 000 more than the neighbour's house. It has been proven time and time again, that a property's value is determined by the market, not by an agent, nor any other individual. It has nothing to do with how much the seller paid for the house a number of years ago or how much he is hoping to profit from the house, but driven purely by similar recent sales in the immediate surrounding area.

Five Symptoms That Indicate Your Property Is Overpriced

Your home is priced well above your neighbours' properties.

The first thing estate agents do before they recommend a price to a seller, is to look at the sales prices of the last three sales of comparable-sized homes in the neighbourhood. Be sure to get the opinion of two or three reputable agents and decide what a suitable price tag for your house will be. Over-capitalization also has the unfortunate consequence that the value of additions just does not get reflected in the final sales price and often is picked up at a bargain by a savvy buyer.

After being on the market for three months or more, you have not received any offers.

Although some prestigious, high-end homes often stay on the market for long, others should get a lot of interest in at least the first four weeks if they are reasonably priced. If the buyers perceive your property to be priced correctly, you may receive a number of competitive offers to purchase in a relatively short time frame.

You accepted the recommendation of the estate agent who valued your property at the highest price and expected other agents to market it for the same price. You hardly ever hear from the agents and are left in the dark about the progress made.

Realtors seldom work on a property that is overpriced. They may list it and then forget about it. Firstly, because they know they will not get any strong interest in their advertisements, and secondly, simply because they know that their chances of selling the property at an inflated price, are slim. You are advised to speak to agents from a couple of reputable companies before choosing who you would like to represent you. Furthermore, if you consistently hear some agents indicate a price that seems lower than what you expected, it most likely is the correct price. Estate agents from a company such as Seeff, are trained and experienced in proper market analysis and are also familiar with real estate activities in the market.

There aren’t any scheduled viewings. 

Immediately after a property is exposed to the market, there should be at least a handful of appointments with potential buyers who want to view the property. If this is not the case, it possibly indicates that buyers scanning the web are finding enough other similar properties in the area at a lower price. You are advised to adjust the price a little if there has been no viewing in the first 4-6 weeks. At this point it is not yet too late to reduce the price. However, it is important to reduce it as soon as you become aware of these symptoms, if you hope to keep potential buyers interested.

No real interest is shown by walk-ins during an Open House / Show day. 

You leave your home Sunday after Sunday while one after the other agent puts it on show, yet walk-ins never show much interest after hearing the asking price. Remember, the market (the buyers) determine the price of a property. Be a fast learner! Test the market- no results!-adjust the price and get it sold... If you notice one or more of the symptoms described above when trying to sell your property, you are advised to revisit the pricing of your property with an experienced estate agent, from a reputable company such as Seeff. Seeff has been in the real estate business for over 60 years and covers most areas in South Africa and even selective areas abroad.

An experienced area agent will always be able to advise you of the market trends in the area. You may be surprised, but sometimes a relatively small adjustment results in a sudden flood of activity, as buyers suddenly bring you multiple offers. And no, this will not be because your property is priced too low! It will be because your property, is perfectly priced.

Contact Alta, The Property Match Maker, from SEEFF, if you want to buy or sell property in Eldoraigne, Centurion, South Africa. 

She has a wealth of knowledge and delivers service excellence with flair!  

Mobile: 071 758 0996 

alta.nel@seeff.com
Website: altanel.co.za