Your house still not sold? You may need to rethink your asking price

The top reason why a property does not sell is generally because it is overpriced relative to similar properties or the current market conditions. While highly anticipated, we simply do not know when the interest rate will start coming down, and we are also not assured that it will necessarily lead to buyers paying higher prices.

The problem of waiting is that the longer you wait, the lower the price that you may end up with. An unrealistic asking price extends the selling timeline. This means more days of keeping your home show-ready, additional marketing costs accruing, and potentially missed opportunities on other properties you might be interested in buying. The longer your house sits on the market, the more it can cost you in the long run.

An asking price which is notably higher than the current market parameters can deter potential buyers resulting in overpriced properties lingering on the market. Buyers actively searching for properties typically have a budget in mind. If your listing falls outside their range, they will simply move on to properties which are a better fit with their budget.

This can lead to a domino effect in that the longer your house sits on the market, the staler it can appear to potential buyers, who may question why it has not yet sold. Eventually, buyers may simply scroll past it. While an overpriced house might not attract serious buyers, it may attract buyers who may think there is an opportunity to negotiate a significant discount.

While some areas are doing better than others in terms of sales, there are still plenty of buyers and activity in the market, and good opportunities to sell. If everything else is in place, and the property is in a good sellable condition, then, chances are that you need to change your agent or, more likely, your price.

Work with your agent to assess your price against comparable properties which have recently sold in your area. Look at properties which are similar in location, size, and overall features and the condition of the property. By aligning your asking price with similar properties which have sold, your property will be better placed to attract buyers who are actively searching in your price range.

Be flexible in terms of the offers which are coming in to allow the agent to negotiate with potential buyers. A good agent is one who will quickly spot a good opportunity, and will then use their negotiating skills to bring the parties to a mutually beneficial price and deal. Selling also means you can move on.

A competitively priced property is more likely to attract offers and potentially sell for a higher price in the end. A realistic price gets your home noticed by qualified buyers, leading to a smoother and faster selling process. Taking another look at your asking price might just be the key to finally getting that "Sold" sign you've been waiting for.

Additional tips: 

Real estate agents will not only help you price the home correctly and find qualified buyers for your home, but they can also provide helpful information around current market trends, translate industry jargon, negotiate on your behalf, and can often recommend adjacent services such as bond originators and moving companies. The sooner you bring them on board, the better.

With so much riding on choosing the right professional for this task, it can be challenging for a first time seller to know how to select the right agent. To help make this journey a little easier, RE/MAX of Southern Africa shares the following tips...

Find Reliable Recommendations

Nothing beats a recommendation from somebody you trust. If nobody within your inner circle has sold recently, then look around to see what agent is selling the most homes in your area. You're usually able to tell by their yard signs and marketing presence who does the most business within any given area. Online client reviews and testimonials can also help provide an indication of an agent's level of service delivery.

Set up an 'interview'

To make sure you're a compatible match, it can help to meet the agent in person (or virtually, if you're coming in from far away). Before this meeting, an agent might ask for a copy of your ID as a safety precaution - this is totally normal and can actually be an indication that this agent is thorough and well prepared. When meeting with them, a few questions worth asking might be:

• Are they a full-time real estate agent?
• How long have they worked as an agent and within this particular market?
• What is their preferred communication platforms and how regularly can you expect updates from them?
• What will they charge in commission and how negotiable are they on this?

Check their credentials

One should always remain vigilant against con artists and make sure that the agent is actually who they claim to be. Ask them to share a copy of their FFC licence to make sure that they are registered with the PPRA that regulates the industry.