Smart pricing will drive property sales in 2017

A key theme for the property market in 2017 will be smart pricing according to Samuel Seeff, chairman of the Seeff Property Group.

“The market contracted in 2016, demand has dipped in line with the slower economy, more property listings are coming through and buyers now have more to choose from,” he says.

“As the market pendulum shifts towards buyers, the challenge will be for serious sellers to realise they are now competing with other properties and will need to set their prices at the right level.”

The right price is that which will attract buyers and offers. There is a difference between the municipal value and the market value. The former is the value that the local municipality attaches to it for the purposes of charging property taxes and the latter is the value that a willing buyer attaches to your property. In other words, says Seeff, it’s the price you will get for your property in the open market.

“No two houses sell for the same price, unless they are in a new development. Many factors come into play. It is often tempting to look at what other houses in your area are selling for and to then think that your house could sell for a similar price and that you may be able to make quite a handsome profit.”

Seeff says that valuing a property and pricing it when you want to sell, are tasks that are best left to expert property agents in your area and should include consideration of a range of factors that affect the value and price that a buyer may be willing to pay for your home.

“Each house in a suburb is different in the location, the views, the finishes, the size of the home, the size of the land, garden and other added extras. It therefore follows that each house will have a different value attached to it. You can often find two houses in the same street selling for different prices.

“If you are looking to sell, always guard against giving a mandate to the agent that promises you the highest price. If you go to market at a too high price, you will waste time as buyers will simply go to another property or they will wait until the price comes down,” says Seeff.

Research has also shown that properties that start at a too high price tend to sell for less compared to what they would have if the price was set at the correct market level in the first instance. You also risk buyer fatigue.

A comparative market analysis (CMA) which compares your property to other comparable properties that have recently been sold in your area, is a tool used by estate agents to help sellers determine the right price or value range for their property.

The CMA will typically include information on the prices fetched by similar properties in your area, how long they were on the market, what is currently on the market in your range and which properties are not selling due to being over-priced.

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