Let’s cover what a market-related price really is and why it’s important when you sell a Randburg property.  What does it mean to add fat to the asking price?

What Fat Are You Building In?

Firstly, when a buyer asks me whether there is wiggle room on the price, I am honest with my feedback.  And that means the seller and I both know what the ‘fat’ is that is involved in the price the property is listed at.  As property professionals, we are driven and compelled to help you unlock the equity that is built up in your property over time.  But pushing it up by R200,000 is what we call fat.  And it’s not what we think, it’s about what the numbers say.  If your property values are indicating R1,900,000 then demanding the price north by R200,000 is called ‘fat’.  That’s the wiggle room or ‘fat’ that is what we will negotiate on.  

A Market Related Price Gets The Views And Gets The Sale

Pricing history considers the last 10 – 20 sales in an area or a complex.  We compare like with like or apples with apples.  If a property is worth R1,900,000 in a tough market or a good market, then that’s the market-related price.  If you have improved your property over time and maintained it well, and there is something special about your property, we could lift the price a little, but again, that’s wiggle room.  We are back to square 1.

Reports To Support The Right Asking Price When You Sell A Randburg Property?

Firstly, there are numerous reports that we leverage to help us arrive at the correct or accurate price at which to list your property for at sale.  We leverage Lightstone, a 3^rd party data provider that is linked to all the Deeds offices around the country.  As property professionals, we are able to access a number of different reports to support the valuation or the CMA or Comparative Market Analysis for your property.  As property professionals, we really consider the numbers very carefully because when we agree to sell your property not many of us underestimate the responsibility that comes with helping you sell your property and move to the next phase of your life.  We use the following reports:

• Lightstone property report – which considers your property within an area or a complex or an estate.  Street transfers, growth in the property over time as well as bank market share.   It’s a fascinating report when you consider the info that is all pulled together to provide an accurate pricing strategy to consider at the sale.
• Lightstone complex or estate report – which considers the complex or the estate where your property is located.  Again, consider the last 10 – 20 property sales in your street, the complex or your estate.
• Lightstone suburb report – which considers the stats within a suburb.  Again, this results in the number of sales in a particular price band.  The numbers are established considering the total number of sales in an area the gross sales price and then averaged by property type.

One Bite At A Time

When considering the opportunity to provide you with a property valuation, firstly, we stick to the areas we know.  Areas where we know the property values, what has been listed and what the sales price was.  How long did it take to sell and more?  The numbers are the numbers, but I often find there are a few things people consider even more:

• Either the price at sale is less than expected, or more than expected.
• I find that often the first number to leave your mouth is the number that sellers hold you to.  Remember, we are here to unlock equity in your propert,y and whilst we always strive to lift it just a little more than before, the current market is harsh and the conditions tough.
• Furthermore, sometimes a seller knows better than what the numbers show and leads a little more in terms of the price that is sought at the sale. Often, the gap between what is market-related and what is too much fat is simply the difference between a clean and quick sale.  And trust me there are sales to be made in the current market. 
• Often when the market does not perform, we find we have stretched a little hard and need to pull back in order to find the sweet spot.  But pricing a property correctly means that a price correction is rarely required in the current market.
• Finally, when a buyer is shopping in a buyer’s market, the wiggle room question always comes up.  If a buyer loves your home and the price is market-related, you can expect the wiggle room question to come up.  Trust me as property professionals, we hold hard on price even when the market is tough and we know that there is very little fat in the asking price.
• Also, the hardest listing is always one where the seller has over-capitalised on their property and want the option to recoup costs in a tough market.  This is possibly the most difficult sale of all, especially if the market is is working against you.

Options For The Current Market

Living in Randburg and considering whether it’s time for a sale?  There are wonderful sales being made at the moment, and the benefits of selling in a tough market are phenomenal.  So many people believe otherwise but if you price it right, it will sell.

3 Things You Can Check

If you have a Randburg property on the market and it is just not selling, we have a few options to consider:

1. Is the price 100% correct or is the ‘fat’ killing the sale?
2. Is the property in good condition?
3. Is the listing superb – photos, description and weekly communication?
4. When you check your listing on the major portals, does it feature on the first page?  This is critical, especially with an older listing.  Buyers just don’t find your home.  A seasoned Randburg estate agent will know how to get your listing to rank.

Get in touch

If you need assistance from a seasoned property professional call Sandy from Sell with Sandy on 083 550 1220 or visit my website for more information.