With fewer buyers and more property stock to choose from, prices are under pressure, but how do you decide what your property is worth in today’s market? Seeff highlights some of the factors which affect your sales price:
Geographic data – start with an analysis of what your property offers in terms of the land size, square meterage and accommodation, age of the property, finishes and special features. The area, street and amenities will also play a role. You also need to look at other properties in the area for an accurate gauge of the price ranges.
Market data – although there is plenty of information on the property market, it is best to stick to the mainstream property barometers provided by banks such as FNB and ABSA for a balanced view. An experienced area agent can provide up-to-date sales and price information specific to your area to help you make an informed pricing decision.
Sales data – don’t use the list prices on property portals as a guide but look at actual sales transactions of your area and of comparable properties before determining a potential market value. Most areas have a price range and a price ceiling that the market will bear regardless of how big or grand your property is.
Market cycle – when the market is moving and there are plenty of buyers competing for a limited pool of properties, sellers are able to achieve higher prices. Conversely, when there are fewer buyers who have plenty of property stock to choose from, sellers will generally find that buyers offer lower prices.
Urgency to sell – your personal circumstances and financial position plays an important role. If you need to sell in a hurry, you may well have to settle for a lower price. If you have time on your side, it is easy enough to wait for the right offer and price.
Sellers have more negotiating power in a seller’s market, but in a buyer’s market, sellers may need to lower their asking price to remain competitive. Pricing goes hand in hand with demand. What your property is worth, is determined by what buyers are prepared to pay for it in the current market.
Find Seeff on the property portals or visit www.seeff.com.