Putting a home on the market can be stressful, and it can be difficult to make objective decisions when it matters most. Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa recommends that owners lean into their trusted real estate professional for additional insight and guidance.
“Your real estate professional should perform a current market analysis. In this process, they will look closely at the comparable sales of similar homes in your neighborhood that have closed in the last 90 days and take the number of available listings into account when recommending an asking price. Sellers should lean heavily on these insights when agreeing to a listing price,” Goslett recommends.
He also highlights the importance of a seller’s market debut. According to Goslett, pricing the home competitively from the get-go increases the odds of a quick sale. “New listings are called “hot” for a reason— buyers get excited about them. Most buyers screen available homes on the Internet, and new listings get far more web traffic than older listings. Showings are likely to cool off noticeably after the first 30 days on the market. If your home is priced too high when it hits the market, you run the risk that active, qualified buyers will scroll right past it,” he warns.
For sellers who think the asking price their agent recommends is too low, Goslett suggests considering the potential costs of holding on to the property longer than the seller would like to. “Consider the costs of the bond repayments, property taxes, insurance, maintenance and all the other related expenses. How long are you prepared to keep paying for a home you no longer want or need?”
As a final word of advice to all sellers, RE/MAX of Southern Africa provides a few interesting facts to keep in mind when listing your home for sale:
- Homes that are in a good condition that have failed to attract a buyer in a reasonable period of time (roughly between three to six months) are usually overpriced.
- Foreclosures or sales under market price in your neighbourhood can impact your home’s market value.
- It doesn’t pay to set the price too high; most buyers will need financing and the bank will generally use an appraisal based on recent sales to justify the loan amount. If your asking price is above the bank’s appraisal value, then the buyer will most likely not be able to afford to purchase your home.
