In the dynamic South African real estate market, receiving low offers can be a common challenge for sellers. However, by understanding why you are getting low offers and implementing effective strategies, you can significantly boost your property's appeal and attract higher offers.
Why am I getting low offers?
If you are consistently getting low offers the first thing you need to do is establish if your property is correctly priced. If you are working with a real estate agent and they haven't supplied you with a comparative market analysis (CMA) ask for one and ask them how they came to their asking price. You have to detach the emotional connection you have with your home to ensure you are being realistic about the asking price.
Once you have established that you asking price is indeed correct you can start delving deeper into what might be behind the low offers. Some factors that could cause low offers are:
- Is the home showcased in the best light? Most property searches are happening online and if your home doesn't have good quality photos with effective description buyer's might be scrolling past the online listing.
- Is the property exposed to as many potential buyers as possible? It should be listed and promoted via the correct channels to ensure it gets to as many eyeballs as possible.
- The key features should be highlighted and quickly visible. Features that will catch buyer's attention should be clearly visible - for many this might be a solar power backup system, water storage or a rental property being pet-friendly. Ask your real estate agents to mention these features or have them displayed prominently on their website to immediately catch the attention of potential buyers.
- What is the market doing? The prevailing market conditions at the time of putting a property up for sale has a keen impact on how the right price is determined. In a seller's market, for example, there is typically less stock which means buyers are often more willing to pay slightly more for a property than they would have in a buyer's market. Similarly, the interest rate also affects what buyers are willing and able to pay for a property.
- Property condition: The condition of the property can impact its value. If the property is older, consider hiring a home inspector to assess any potential major issues and use the findings to negotiate repairs or a reduction in the purchase price.
- Local amenities and infrastructure: Proximity to schools, public transportation, and shopping centres can affect the property's value and should be factored into your negotiation strategy.
How to boost your property's appeal
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Enhancing curb appeal: Start by improving the exterior appearance of your property. This includes landscaping, maintaining the exterior, and staging to create an inviting first impression for potential buyers.
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Staging your home: Declutter and depersonalize your space to appeal to a wider range of buyers. Use neutral colors and furniture arrangement to create a warm and welcoming atmosphere that resonates with buyers.
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Highlighting unique selling points: Identify and showcase the unique features of your property that set it apart from others in the market. Effectively marketing these selling points can help attract more interest and higher offers.
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Addressing maintenance and repairs: Before listing your property, address any maintenance issues or needed repairs. Proactive maintenance can increase the perceived value of your property and justify a higher offer.
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Setting the right price: Pricing your property competitively is crucial. Use comparative market analysis and professional appraisal to determine the right price that reflects the value of your property without undervaluing it.
Understanding how to market your home in the digital age is crucial as most home searches happen online. Here is how to sell your home in the digital age
Negotiating offers - what you need to know
Buyers are oftentimes as educated as the agents regarding the pricing of the market and are prepared to pay the full asking price if they see value in the home. The biggest mistake that is often made is listing the property too high online. Many buyers search in increments of R500k and if the property is listed just above that, it won’t come up in their alerts and won’t attract the right buyers.
Sellers often think that they should market their properties at a higher price in case they get negotiated down but, instead, if you market your property at the correct price, there is no need to negotiate. You will attract the right buyer who recognises the value of your home. However, if you need to negotiate keep the following pointers in mind:
- Do Your Homework: Before entering negotiations, research the market and comparable properties in the area. Understanding the going rates will give you a solid foundation for your negotiation strategy.
- Be Patient and Flexible: Negotiations can take time, and it's crucial to be patient. Be open to compromise and find common ground with the buyer. Flexibility can lead to a more favourable outcome for both parties.
- How low should you go? If the offer is within an acceptable range of 5% to 10% below the asking price with minimal conditions, consider it seriously. There is no guarantee of a higher offer.
