Property pricing remains crucial for sale success

In today’s competitive market, correct pricing and marketing strategy are the two catalysts to a property being sold in a shorter time frame, says Graham Gavin, Broker/Owner of RE/MAX Premier, whose office in situated in Cape Town’s popular Southern Suburb of Claremont.

Demand is generally high for properties within Claremont and the rest of the Southern Suburbs because of the excellent facilities in these areas. The Southern Suburbs are situated close to the Cape Town CBD and there is easy access to the major transport routes and a variety of up-market amenities. “However,” says Gavin, “despite demand, overpricing has led to many homes being on the market for longer than they should be.”

He says that in the current market buyers are not willing to pay more than what they perceive to be fair market value for a property. “Price has become the number one reason why a home does not sell, with the majority of the homes in the area being on the market for approximately 150 days before being sold. If a property is not marketed within the correct price bracket, it is likely to lose buyer interest before they have even seen it. This is why it is imperative to market the home at a value that is in line with what the buyers in the current investment environment deem to be fair,” he says. “It is often very difficult for a seller to determine the correct price by themselves and they sometimes exaggerate the price due to emotional attachment to the home. This is where the service of a reputable estate agent with working knowledge of that area becomes essential.”

He adds that an experienced estate agent will be able to provide the seller with figures regarding the prices at which homes in the area have been sold, amount of time they spent on the market and whether there was a difference between the original asking price and the achieved price at sale. The longer a property remains on the market, the more chance there is that the property will sell for a lower price. An estate agent will also be able to provide the seller with a marketing plan and advice on what may need to be done to the home to increase its perceived value and chance of sale.

According to Gavin, kitchens and bathrooms are the first two rooms in a home that buyers in Claremont look at and renovating these two areas could help buyers sell their home quicker and for a higher price. “The kitchen is commonly thought of as the heart of a home, and is often a major deciding factor when buyers are choosing a property,” he says. “Buyers are looking for homes with updated contemporary style kitchens and bathrooms that complement the overall look and feel of the home. Homeowners who want to renovate their home to achieve a higher price when they sell should focus primarily on these two rooms, but should also be careful not to overcapitalise on these renovations.”

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that statistically the kitchen is a major factor in determining a home’s re-sale value and kitchen renovations can be largely recouped on the sale of the home. Remodelling the kitchen or bathroom are possibly the two best investments homeowners can make in ensuring the value of their home.

RE/MAX Premier is currently marketing a home with a modern, open-plan kitchen and contemporary style en-suite bathroom. This luxury, two-bedroom penthouse is situated in the heart of Claremont and features uninterrupted northern views, large open-plan living areas, a media room, a fully equipped study, a plunge pool on wrap around balcony, air-conditioning and under floor heating, automated double garage and 24-hour manned security access control.

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