Pricing your home correctly in an affordability-conscious market

South Africa’s property market has changed. For the past decade, sellers could afford optimism. Interest rates were lower, buyers stretched budgets more easily, and demand in many suburbs carried listings that were potentially priced slightly above market value.

Today, buyers simply can’t.

Higher borrowing costs, stricter bank affordability assessments, and rising household expenses have created an affordability-conscious market. Buyers are still active, but they are precise, cautious, and financially calculated.

This means that for sellers, their asking price now more than ever determines whether they will be able to sell their property at all.

The biggest mistake many homeowners make is assuming pricing is just about what they need to get from the sale. In reality, pricing is about what the market is able and willing to pay right now.

The difference between value and marketability

One of the most important concepts sellers misunderstand is the difference between a home’s value and its marketability.

Your home may be worth a certain amount on paper based on its size, location, finishes or municipal valuation, but buyers aren’t buying paper value. They purchase perceived value within their monthly affordability.

In today’s market, buyers are calculating repayments first and property features second.

A buyer who could once qualify for a R2.5 million home loan may now only qualify for R2.1 million after interest rate increases and stricter lending checks. That buyer hasn’t disappeared, but their price ceiling has. This is why two homes in the same street can experience completely different outcomes.

The correctly priced home attracts buyers during show days and has an offer (or more) within weeks, while the home priced only 8-10% higher sits unsold for months. 

Pricing is not just about the property; it is about the buyer pool you allow your property to enter. When a property is priced correctly, it appears in more search brackets, attracts more qualified buyers, and creates competition. When priced too high, it effectively becomes invisible. 

Why overpricing costs you money and not just time

Many sellers believe that starting high “leaves room to negotiate.” In reality, it does the opposite.

Data consistently shows that overpriced properties stay on the market longer, and the longer a property sits, the less buyers trust. Buyers begin to assume that something is wrong with the property, the seller is unrealistic, or that a better deal come later.

Once a listing becomes stale, buyers wait for price reductions instead of making offers. Now the sellers are faced with the reality of continuing to pay rates, levies, and bond interest on a property they might have already moved out of. During peak seasons, they lose momentum, making slower periods even more difficult to navigate, and eventually, they reduce the price under pressure.

Ironically, homes priced correctly at the start often sell closer to the asking price than overpriced homes that undergo multiple reductions.

The first 30 days matter the most

The first month on the market is the most valuable marketing period your home will ever have. This is when agents alert their buyer databases, online platforms prioritise new listings, and serious buyers book viewings.

If your property is priced correctly, this window produces viewings and offers. If it is overpriced, the market quietly rejects it, and you don’t get a second chance at a “new listing” moment.

A price reduction later does not reset buyer psychology. Instead, buyers interpret it as confirmation the property was overpriced from the start.

The affordability filter buyers now use

The reality is that buyers today no longer just ask, “Do I love this house?” They ask, “Can I comfortably afford this payment?” While this has always been a part of the property buying process, now more than ever, it is the first question they ask when browsing a property.

More than ever before, buyers are stress-testing their affordability due to food price inflation, municipal cost increases, electricity and water backup systems, and school and transport expenses.

This means that buyers are typically shopping below their maximum approval to create financial breathing room. So when a property sits just outside affordability brackets, buyers don’t negotiate - they simply skip it.

Your competition is no longer just similar homes in your suburb. It is every property that fits into the same monthly repayment range.

Why private sellers especially struggle with pricing

Many homeowners decide that going the private route will save them money - no agent, no commission, right? But pricing becomes significantly harder without professional insight.

The emotional attachment, renovation costs, neighbourhood sale prices, and online estimates often lead well-meaning homeowners astray when they set out to price their homes. The problem is that buyers are so much more informed than before, so they base their decisions on recent comparable market analysis, bond affordability, demand, and how long a property has been on the market.

This mismatch frequently leads private sellers to start too high, lose early buyer interest, and ultimately sell for less. In many cases, these private sellers turn to agents when the property has been on the market too long, and they end up having to pay the commission they wanted to avoid.

It is important to remember that accurate pricing is not guesswork. It requires the latest data and also buyer behaviour insights that you can only get from understanding the market, working with buyers, and knowing how to uniquely tailor the marketing of a property.

What happens if your property is already overpriced?

If your property is already on the market and overpriced, do not lose hope. The situation is recoverable, but timing matters.

The biggest mistake is waiting too long to pivot back into the right bracket. Whether you are a private seller or using an agent, it would be best to remove the listing from property platforms before relaunching the listing.

If your agent was the one who suggested the above market pricing, now would be the time to seek help from another professional. The right agent will be transparent about why they are setting an asking price at a certain level, will provide a clear marketing plan, and stay in communication with you about anything regarding your property.

Take new listing photos if the listing photos are from another season, or the interior photos feature holiday decorations like a Christmas tree. Many buyers will still recognize your home, but the new photos might put your property in a new light, and this, coupled with the correct price, will increase its perceived value.

How to price your home correctly from the start

Determining the best asking price for your property is a critical step in ensuring a successful sale. The importance of thorough research and strategic considerations when determining the asking price for a property in South Africa can not be emphasised enough.

Here are several strategies to help you set the right price:

Comparative Market Analysis (CMA): Conduct a comparative market analysis by evaluating the sale prices of similar properties in your area. Look at properties with comparable size, location, condition, and amenities that have recently sold. This analysis provides a realistic benchmark for pricing your property.

Consult a real estate agent: Hiring a professional real estate agent with local market expertise can be invaluable. Agents have access to detailed market data and can provide a well-informed price recommendation based on their experience and knowledge of current market conditions.

Evaluate market conditions: Consider the current state of the real estate market. In a seller's market, where demand exceeds supply, you may be able to set a higher asking price. Conversely, in a buyer's market, you may need to be more competitive with your pricing to attract buyers.

Consider unique features and improvements: Take into account any unique features or recent improvements to your property. Upgrades such as a renovated kitchen, new roof, or energy-efficient windows can add value and justify a higher asking price.

Get a professional appraisal: For an unbiased opinion, consider hiring a professional appraiser. An appraisal provides a detailed assessment of your property's value based on various factors, including its condition, location, and recent sales of comparable properties.

You are not pricing your home according to what you personally need from the sale or what you feel it deserves. You are pricing it for the buyer who can comfortably afford it under current lending conditions and household cost pressures. In 2026, buyers remain active and willing, but they are financially disciplined and guided by repayment affordability. For this reason, the homes that sell the fastest are rarely the cheapest properties available. They are the ones priced accurately within the range the market can support, where buyers feel confident enough to make serious offers without hesitation.