Pricing a home too high can be one of the most common and costly mistakes sellers make.
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It's the new year and you still have not been able to sell your home. The reason for this may just be because you have not set the price correctly.
According to Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa, as the property market continues to fluctuate, homeowners may find themselves uncertain about pricing their homes correctly when it comes time to sell.
He said that pricing a home too high can be one of the most common and costly mistakes but noted that there are a few critical signs that indicate if a house may be overpriced.
Goslett explained that overpricing can not only delay the sale of a property but can ultimately result in a lower sale price than initially anticipated.
“A well-priced home typically generates interest within the first few weeks it’s listed,” he said.
“When a home sits on the market for too long without attracting offers, it’s usually an indication that buyers are finding better value elsewhere.”
Here are the top three warning signs to look out for:
Goslett noted that if your home has been listed for several weeks without much interest, this is a primary indicator that potential buyers are finding other properties more attractively priced.
He added that buyers often use online platforms to compare properties, and an overpriced home will quickly lose appeal.
“When potential buyers aren’t even booking appointments to view your home, this could mean they’ve ruled it out based on price alone,” he added.
The property expert said that potential buyers will provide feedback to the agent and this is invaluable.
“If they’re consistently commenting on the price as a deterrent, take it seriously. Buyers today are well-informed, and if they feel the home is overpriced, they will probably avoid negotiating altogether,” Goslett said.
Lastly, sellers should always be aware of what other houses in their area were sold for, and if similar homes in the area are selling faster or at lower prices, it’s time to reassess.
Goslett advised that buyers will be aware of the market trends in your neighbourhood, so setting a price that is far above comparable properties will discourage interest and could lead to longer listing times.
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