Property not selling ? Avoid these pricing mistakes

Property not selling ? Avoid these pricing mistakes

With the property market beginning to show signs of a recovery, it is more important than ever to ensure your home is correctly priced.

Kay Geldenhuys, property finance manager at ooba, SA's leading mortgage originator, 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 ooba's 5 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 and savvy buyers, who have been looking around for a while, have a good sense of the suitable pricing. 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. And that could lead them to believe there is something wrong with the property or think that you must be will be desperate and willing to accept a very low offer. Conversely, beware of under pricing which will have a detrimental effect on the home owner¿s 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.

Hello ooba news

The latest oobarometer stats reveal that the average purchase price growth among first-time buyers remains strong at 12.1% in June. This, together with the continued easing in lending criteria, is good news for potential homebuyers in South Africa.

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 ooba, SA's leading mortgage originator, said that a property listed at the right price will give sellers the greatest chance of attracting buyers.

South African banks have loosened their lending criteria which has supported a revival in the property market and helped new buyers enter the market says South Africa's leading mortgage originator, ooba.

South Africa's leading bond origination company, ooba, has seen a 55% increase in the value of approved loans from April to September this year, with a 21% surge from August to September alone.

With house price indicators like the oobarometer perking up, smart buyers are slowly returning to the market and need to be armed with how to make the best purchase possible. Ben Seymour-Brown, manager of group direct sales at ooba, said: "We expect more people to return to the property market this year and certainly next as the economy recovers, the effect of lower interest rates is felt and confidence returns to bricks and mortar investment.