Selling your house: the psychology of price, position and purpose
Category Blog
When selling your house there may often be a disconnect between your vision and that of prospective buyers. There is the price that you want, and think your home is worth - and the price the buyer has in mind. Then there is the matter of position. What you may be comfortable with may not suit buyers at all. A busy road may present security to you, and inconvenience to them. Being realistic about position is important to understanding the pricing factor.
And then there is the small matter of why the buyer may contemplate your home for purchase at all - and it may have nothing to do with anything you imagine, but suit the buyer in a variety of different ways.
Buyers may consider a house because: they want to renovate; they may want the land only; they may be buying to be closer to family; they may only be interested in price, looking for a bargain; they may like the open-plan you are so proud of, or dislike it intensely; they may like the well-developed garden - or they may like the fact that the garden is in disarray and they will have an open slate to develop it. The list of possibilities goes on - the fact remains that you may primp your house as much as you like, and it may sell for some other reason.
Benefits of accurate pricing
- The goal of pricing your home correctly is to enhance visibility and attract more buyers.
- Price is generally the first factor that guides a buyer's search. Obviously, the objective is to sell your home for the highest price in the shortest time. Pricing your house too high may mean that you fail to sell for a number of months, if at all.
- Invariably, the right price attracts the right buyers! If you overprice, you may well attract buyers in a higher price range with higher expectations.
- Overpriced homes stand out in comparison to market-related homes. Buyers use it to compare and to justify the purchase of another property.
- In short, regardless of how well you renovate, present or stage your home, it is still important to price the home appropriately.
- A lower price may bring you a quicker sale and less inconvenience. It may also bring in a greater number of interested parties. Estate agents generally advise strongly on price, and will know what will attract buyers in your area.
Why pricing correctly is important
- Buyers will investigate other homes on the market and compare prices. So you can't pull the wool over their eyes - there is always going to be competition in the market, but think of unique ways to highlight the best value points of your house.
- Technology enables buyers to compare all manner of options, prices, positions and facilities offered - along with entry-level prices and high-end prices.
- The pricing of houses can reflect the condition of the market as a whole. Against the backdrop of changing market circumstances, such as a drop in currency or rise in interest rates, you will get a good feel for what is possible for your house.
To practically evaluate your home
- Location, location, location. Time-honoured mantra of property valuation. Very often the condition of a house is less important than where it is located. We tend to think that our home is the best - but remember to be objective when determining its value...because buyers will not be viewing it in the same light as you.
- And keep to a steady, sensible view of the reality of both position and an agent's advice. Always keep up to date with changes in the market, so that when you come to sell you will not be ambushed by prices less than you'd hoped. The more recent the appraisal obtained, the more accurate the figures will reflect the market.
- And the market will be driven by interest rates and the amount of houses available in your area; is it a buyer's market or a seller's market?
- The value of a home is determined by what a buyer is willing to pay for it in the current real estate market.
- While some improvement of an older property may well be advised, you should take care not to overspend and overcapitalise.
Selecting an Agent
- An agent who understands your objectives in the selling process - and who can gently persuade you to a more practical pricing option if necessary, is a good agent. Estate agents don't establish price - the market place does. So you and the agent should work together to agree on what is best for a fair and market-equitable price.
- Professional estate agents should have the confidence to talk you through the pricing process, not only because they obviously want to sell your home, but also to ensure that you get a fair price for your house's situation and condition. An agent who tries to bulldoze you into selling too high or too low, will not be doing you any favours - and either way these tactics will not increase the appeal or value of your house.
Leapfrog Property Group
Leapfrog Property Group offers a fresh and innovative approach to buying, selling, renting and property investments, ensuring the best property deals for clients across South Africa. Our agents are qualified, trained, experienced; our approach bold and spirited, driven by heart, generosity and honesty. It is our mission to advise, eliminate obstacles and save you unnecessary expense. Trust is our watchword. And value our motto. Armed with our combined credentials, we are the bright face of excellence in the South African market.
Author: Leapfrog Property Group
