Sep 29th, 2009 by Johan
Image by thinkpanama via Flickr
Looking at Simon’s Town homes for sale in a recent publication reminded me again that many sellers are not doing homework before they establish an asking price for their home. In order to get a fair price on your Simon’s Town home you need to, at least, visit other currently on the market Simon’s Town homes, in your suburb or within a few kilometres of your home.
I get the feeling that sellers, either trust their real estate agents to give them honest advice or that the sellers are just ignorant. The problem with many real estate agents, in a non existing real estate market, is that they want stock; they want homes for sale on their books. The problem is that some home owners have an inflated, pre-crisis perception about the value of their homes. If you add the lack of good priced homes on the market today and a stubborn seller you get emotional and gutless real estate agents. The real estate agents do not have the courage to tell the sellers that their homes are over-priced. A few months down the line when the home owner has been battered by the reality will he accept defeat and lower the price. Unfortunately, by then his home was exposed to the market for a long time and are now stale.
This is why you get a lovely Simon’s Town home for sale at R3.75 million, with four bedrooms, two en suite bathrooms a third family bathroom, a study, a huge open living area with modern facilities, double garage, servants quarters and views unique to Simon’s Town.
But two kilometres down the road you get a R3.1 million Simon’s Town home for sale with two bedrooms, two bathrooms and no garages…..ouch!
Let me summarise some of the critical points:
- Ensure you know what the market is willing to pay for a home like yours. You can do the homework or you can ask your real estate agent to do a comparative pricing analysis for you. This will provide you with information on sold properties in your area.
- Only spend money advertising your home, if you are absolutely sure your asking price is competitive.
- If priced correctly you don’t have to accept less than your asking price. Why not create interest and advertise your property for the minimum you are willing to sell it for today. This will show if there is interest.
- In a market where the price continues to increase you can add negotiation-fat. But in a declining market or a market at the bottom of the pit, I suggest you do not add fat. Price your home correctly.
Call us today should you need advice - SimonsTownRealty.Info 021 786 4028.