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 With
the property market beginning to show signs of a recovery, it is more
important than ever to ensure your home is correctly priced.
Jenny Rushin, property finance manager at mortgage originator ooba, said
that a property listed at the right price will give sellers the greatest
chance of attracting buyers.
"A lot of properties on the market have been sitting for months
and may continue to sit despite the predicted recovery as the property
is overvalued."
Here are the five most common valuation errors to avoid:
1.Skipping the research
Don’t put your property on for what you think it is worth, what
your friends think it might go for or even what prices are listed for
in your area.
Instead, ensure you have an expert agent look at the recent sales of
homes in your area that are similar to yours. This sort of comparative
market analysis will give a much more realistic idea of what your home
is worth.
An inflated price will scare away potential buyers especially in current
conditions when bargains can be found.
2.Getting emotional
It’s natural to become emotionally attached to your home but buyers
are looking for a sound investment and likely to view your home dispassionately;
they simply won’t pay extra for your sentimental attachment.
Hard as it is, it’s best to stay objective by looking at the statistics
of actual comparable sales and remind yourself that you are involved in
a business deal.
Remember: don’t take low offers personally. It could be the start
of a negotiation that ends in a sale.
3.Going with the first agent
Make sure you shop around for the best deal; it is always worth getting
a valuation from a few different agents in your area and asking them to
back up their valuations with comparable sales data.
You can also consult with a professional property evaluator who will
be able to give you the fairest pricing.
4.Pricing too high from the start
Agents will tell you that the first couple of weeks on the market are
your most crucial time.
If your home enters the market overpriced many buyers will overlook it
from the start because it will be out of their range. On the other hand,
savvy buyers who have been looking around for a while will have a good
sense of what a suitable price should be. By the time you reduce the price
to fair market value, many potential buyers will have already found something
else.
Other buyers may initially be interested in your new low price, but they'll
also see that your home has been sitting on the market for some time.
That could lead them to believe there is something wrong with the property
or think that you must be desperate and willing to accept a very low offer.
Conversely, beware of under pricing which will have a detrimental effect
on your personal wealth.
5.Chasing the market
If you list your home too high to begin with, you may find yourself making
incremental price drops but never quite catching up with the market. And
when a home has had multiple price reductions, buyers may view it as stale.
It’s best to work with your agent to re-evaluate market conditions
and determine the fair market value of your home
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Newsletter:
3 February 2012 to 10 February 2012 - Krugersdorp, Gauteng, South Africa
