The difference between value and marketability

As a seller you will naturally do whatever you can to maximise on the selling price of your property and it is advisable to familiarise yourself with all the factors that could have an impact before putting the property on the market.

According to Steve van Wyk, Seeff’s Managing Director in Centurion, a property’s value and marketability is not the same thing, but both play a crucial role when price is determined.

“Although there are many things you can do to improve the desirability of your property, some factors like property prices, crime in your area and the interest rate are out of your control and you can’t do much about it”.

Van Wyk says value is the price placed on a property after considering factors like position, the condition and age of the property, servitudes, crime in the area, the size of the property and the stand and extras such as a pool, alarm, irrigation system, lapa etc.

Value is further determined by the price of recent sales in the specific suburb based on the square meterage of the property and the prevalent market conditions at the time such as the interest rate and number of competing properties on the market.

Marketability however is how ready the property is to sell. “When you want to determine the marketability of a property the following questions needs to be asked: Has the property been priced at the correct price, is there a demand for property in that area and is the property in a saleable state when compared to similar properties?

A well-maintained garden for instance is a good way to illustrate the difference between value and marketability. While a presentable garden can certainly make a property more appealing and would probably increase the marketability of it, it would not typicaly increase the value.

Van Wyk concludes that a property is both of good value and marketable when you receive an offer that is market related.

Tips on how to make your property more marketable:

- Keep the garden presentable, mow the lawn, trim the bushes and plant flowers
- Repair anything that could put potential buyers off from buying the property
- Create a good first impression with a neat and tidy house. Make sure the carpets and windows are clean and take care of clutter.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 May 2018
      Homeowners who are thinking of selling and “trading up” to a bigger or a better home had better be quick now if they want to get the best deal.
    • 23 May 2018
      The new Loftus Park development in Arcadia is really going to boost the demand for homes and rental accommodation close by and the neighbouring suburb of Sunnyside, says Gerhard Kotzé, MD of estate agency group RealNet Holdings.
    • 23 May 2018
      The importance of correctly pricing a property for sale is more imperative than ever. This is according to Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, who says that despite this crucial selling fact being emphasised so often, in the current market, many sellers are still expecting unrealistic prices for their homes which is having a negative impact on the ultimate sale price.
    • 22 May 2018
      Extreme weather appears to be the new normal, evident by the volume of insurance-related disputes reaching the industry watchdog’s desk. To avoid a situation in which your insurer refuses to pay up, you should proactively ensure that your home is well-maintained and ready for whatever winter has in store.
    • 22 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 22 May 2018
      According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, dealing with some sort of neighbour dispute is an unavoidable part of life unless, perhaps, you choose to live on a remote small holding for the rest of your life.
    • 22 May 2018
      Buyers feel that they are getting value for money in the Northcliff area without having to compromise on aesthetics and amenities
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us