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Simon’s Town Property For Sale: Overpricing can be costly to seller

December 28, 2007 – 11:37 am | by Johan

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We notice the same trends for Simon’s Town property for sale. This article explains the consequences when you overprice your Simon’s Town Home:

On the back of predictions by Absa that house prices will grow at 10% in 2008, compared with an average growth of more than 30% in some areas during 2004, a leading real estate player has warned of the high cost of overpricing.

Agreeing with Absa that property on average was only likely to show reduced growth in the near future, Mike Bester, CEO of Realty 1 International Property Group, said sellers who refuse to adopt market-related prices would be increasingly penalised. He said this penalisation would take a number of different forms.

One was that sellers would be ostracised by buyers who had become intensely affordability-focused in recent months. Fast-paced house growth since 2002, rising interest rates and the June 2007 promulgation of the National Credit Act (NCA) had collectively ensured that the buyer radar was now highly attuned to what constituted value for money and what was over-priced.

This attitude, which was prevalent among buyers in all sectors, had effectively put the brakes on over-paying, he emphasised.

“The days are gone when buyers would not only queue for a property but also pay inflated asking prices and in some instances, even more than asking price. It’s a buyer’s market today, with fairly high levels of stock and buyers who are cannier and better-informed about market conditions than ever before. They will simply walk away from an overpriced property rather than overpay,” Bester warned.

The second area in which over-zealous sellers will be affected is that of financing, he said. “When banks are assessing the market value of a property, overpricing will be a negative.”

In addition, sellers who refuse to accept scientific price counselling will negate their listing agent’s enthusiasm. “It stands to reason that professional agents will redirect their marketing budgets at more saleable properties,” said Bester.

Without any doubt, sellers who overestimated their selling prices were sentencing themselves to months, rather than weeks, on the market, having to live in a constant state of show readiness. When they do get an offer, there was a 90% chance of it being not only below their asking price, but also below market price.

[In Simon's Town the average time to sell a home was 120 days but I predict it will take longer and longer as sellers are stuck in the old mind set]

“Historically, it’s been shown time and again that overpriced properties generally take a lot longer to sell and invariably sell for 10% to 20% less than the original listing price.”

Another mistake often made by sellers is linking their selling price to their personal circumstances.

“The bottom line is that the market doesn’t care. If you are serious about selling, don’t inflate the selling price, don’t base your pricing decision on your personal situation and needs, don’t think that buyers are naive, and be prepared to enter into negotiations.” – Ingrid Smit

I agree fully with Ingrid and Simon’s Town Property owners can use the following to establish a reasonable value for their homes. If you need a detailed comparative analysis for your Simon’s Town home then contact us today and we will do it for free.

Here are more articles on price to sell
Will your Simon’s Town Home For Sale Become a Property Wall Flower?

SimonsTownRealty: Sell, Buy A Simon’s Town Property? Phone Today 021-7864028 or 082 870 2004

How Do You Care For Your Second Home When You Are From Out Of Town? Ask The Local Eye To Take Care.