To get the price right when you sell your family home is critical to a successful property transaction. Nobody wants to have your property out there with no viewings. Nobody wants to work with an agent who just provides little to no feedback when your property is on the market and things are just too quiet. In reality, if you have an open mandate, then the one agent waits for the other to blink and that means having the price discussion. And trust me it’s always hard.
The estate agent valuation versus your expected price
To get the price right when you sell starts when you meet with an estate agent. They will likely already know what your property or your unit will be worth from a sales perspective. Unfortunately, though your property agent, is often at your mercy when it comes to the listing price. As the seller, you have the final say about the listing price and more often than not, nowadays, sellers want just a little too much. This often makes your property unattractive when marketing the property and buyers know a good market-related price when they see it. The listing price is the price the property professional will load when they prepare to get your property loaded on the major property portals that will showcase your property. Also, remember that buyers shop in price bands so if you want R1,6m then you are missing out on those buyers that are only able to shop up to a maximum value of R1,5m.
What’s an indication that your price is too high?
If within a week of your property is listed, but you have not had any enquiries this could be an indication that the price is not right. There is honestly a direct correlation between the price and the response from the market to view a competitively and market-related property that is priced correctly. Furthermore, if your property has been on the market for some time and you are not getting interest then this could most definitely be an issue relating to price. When I talk about interest from the market with regards to your property, I mean enquiries which lead to viewings, and viewings lead to offers which result in offers and eventually a sale. I would most certainly expect that after a week or two of listing your property that your estate agent makes contact with you with regards the price. This is referred to as price counselling.
What is price counseling?
When your enthusiastic agent who has won your confidence to sell your unit contacts you for a catch up a week or so after your property has been listed, but where no inquiries have been received wants to come and see you. This could be the price counseling conversation. Price counseling often takes the following into consideration:
- How long you have owned the property?
- How much you are insisting your property should be listed for.
- The growth on the value you paid for the unit over your asking price.
- What the comparable average sales price in your complex or your suburb is against similar properties (size of house and size of the stand).
- A complex report if you live in a sectional title will definitely give you the true picture of what your unit should be. Or a suburb report will assist with a complex unit for sale or a freestanding property. Getting the right when you list is directly linked to the sales price you get when you sell.
So, what is the sweet spot?
From a pricing perspective finding the sweet spot with pricing is important, especially in the current buyers market. The sweet spot is the price that you peg your property at. If you get no enquiries, and you drop the price, a little, then the market reacts, almost immediately. Keep going with small price drops in small increments until you start receiving enquiries. That gets you close to the sweet spot. Remember enquiries lead to viewings which lead to offers which result in sales. Your target audience of potential buyers will start responding to the marketing of your property when the asking price of your property becomes more and more competitive, and, also more market-related.
How busy is your estate agent?
If you have not heard from your estate agent at least once in a 2-week period, you might have backed the wrong horse. But you can turn this around by requesting a meeting to discuss:
- How many enquiries your property has generated?
- Have you had many viewings you have had to your property?
- And, how many times you have heard from your agent on a 2-week basis?
- Just how many offers you have received on your property?
- What the marketing plans are to promote your property online?
- Do the current photos of your property look professional? If they are dark and do not showcase your property brilliantly then request professional photographs or better yet, an HD video. This will work wonders for your properties rating on the prominent property portals in SA.
- Push a little harder to make sure that your agent has your full and undivided attention. Especially, if your estate agent has a sole mandate.
The mandate and its merit?
I will state up front that I am a big fan of a sole mandate. But in a buyers market, an open mandate may not be a bad call, but I say this with reservation. Open mandates should not have more than 2 maybe 3 agents at the most. But a sole mandate ensures your agent gives you 100% of their attention. Price counseling often goes out the door when your agent has an open mandate because your agent(s) are not really invested in the sale. However, a good estate agent will work your property regardless of whether they have a sole or an open mandate. But, you will get better service and better communication and a better relationship with a sole mandate. Click here to read a little more on the importance of a sole mandate.
Remember that should you opt for an open mandate, the commission required is often higher because the agent carries more risk. Just a thought.
How long should you wait to get listings?
The short answer is, it varies. Get the price right you will sell your home. If your home is in top condition, your garden looks great and you have maintained your home well then chances are your agent should receive inquiries within a 2 week period. If you need to do work on your property, then take it off the market and request new photos when you are ready to put your property on the market again. Definitely consider a series of articles we have written about home staging, especially given that we are in a buyer’s market. This is a novel concept in SA and although there are quite a few companies doing it, this is concept is still gaining momentum in SA. Read some of the articles if you want to see what home staging is all about. The benefits and we also provide you with practical room by room guides if you know certain rooms need more work than others. This is fun and it really does help to sell your home faster, especially in a buyer’s market. Read more going room by room to include (TV room, main bedroom, bathrooms, kitchens, kiddies rooms, small office and the garden). Also read the reasons why decluttering is so important before you put your home on the market.
Get the price right when you sell – how can we help?
Our job is to help you get the ball rolling. And specifically with a personal referral to an agent that is well-known and already successful in your area. We concentrate primarily in the Randburg area because it is just so big. Did you know there are over 60 suburbs in the Randburg area? We offer you the following:
- Quick turnaround. Don’t keep scrolling and don’t ask 10 agents for a free property valuation. Let us help you to connect with some of the best agents in your area.
- Advice about the market if you need it, like the impact of the current buyer’s market on sales, etc. And advice around how to get the price right when you sell.
- Superb service. That means we deliver on our promise to get the ball rolling with a top agent in your specific suburb.
- Advice and an honest discussion about the different mandates you can choose from.
- Advice on whether to upgrade (paint, etc) your property before you put it on the market.
- We can also provide practical and easy to use reports. These include which include a suburb report if you live in a house. A complex report if you want to have a more granular view of the sales prices in your complex.
Connect with us now!
- Call us on (083) 550-1220 if you have any questions at all and need more assistance.
- Need a free property valuation (physical), or even a digital property valuation, click here, leave your details and we will call you right back.
- Need a complex report? Pop your details in, online, and we will get one through to you if you live in the Randburg area. Be sure to leave the name of the suburb you need a suburb report of.
- Need a suburb report? Pop your details in, online, and we will get one through to you. Be sure to list the name of your complex.
- Need EA Connections to refer you to the top agent in your area? Click here and leave your details – we will call you right back.