Pricing Your Property Correctly

At REDZ etc we prefer to make use of the services of professional real estate valuers. We have therefore formed a professional alliance with WesternPro Valuers who offer their service through REDZ etc at extremely competitive prices.  They prepare a market related valuation on your home which amounts to the amount estimated to be the market value based on actual sales in the area. Amongst other factors, they take into consideration:

  • that market conditions can change rapidly due to a myriad of external factors;
  • that the property market is a very local market and that conditions in one area do not always influence prices in another; and
  • that market forces of supply and demand regulate the price of property

Here are some home truths about property pricing that sellers may want to take cognisance of:

  • The price that you paid for your property, the amount of money you have spent on it, the average capital growth on properties and the municipal valuation are not necessarily particularly relevant to the present value of your home.
  • Overpricing your property when it initially goes onto the market will probably be the main reason that it does not sell as soon as you have anticipated.
  • The length of time that a property is on the market is bound to affect the price. If it was overpriced when it came onto the market, it will most probably sell at below true market value because the price has been reduced by an over-exposure to the market.
  • The length of time on the market will not increase the price of the property, i.e. you will not necessarily receive a higher offer if you wait longer. Take the time value of money into account
  • The value of a home is determined by what a willing, able and informed buyer will pay a willing seller on a specific date.
  • Pricing your home correctly (fair market value) is the way to ensure a quick sale at the highest possible price.