Mar 11 2016



Tags: selling your home  selling price  property market  property sales 

Get the Correct Selling Price for Your Home
The neighborhood can greatly affect the selling price of your home.

Determining the correct selling price for your home can be a difficult task if doing it alone, without the help of an experienced estate agent. While doing hours of research of past property sales in your neighborhood could put you in the correct path in setting an accurate figure, you will still need to look at other factors which will have an impact on determining the true market value of your property.

This is where getting the services of a reputable real estate agent is essential, to give you an accurate appraisal of your property. Property agents are very knowledgeable of the area and are also aware of the current market value of homes within the area. This will greatly help determine the best asking price for your property.

One of the factors we will be taking a look at is past sales of other properties in the area.

Previous Sales of Property in your Neighborhood

Looking at the sales figures of properties from the previous year is usually a good way to start your appraisal. By doing this, you will be able to get a good, general idea of what property in the same neighborhood sells for and what price buyers are willing to pay.

It is also a good idea to know the size of your property (in square meters), so as when comparing the sales figures of other properties sold in the area with a similar property size to yours.

You should also consider how long the property was on the market for, before it sold. This could be an indication if the initial asking price was too low or too high. It is also a good idea to compare the initial asking price and the final selling price of the property and the time it spent on the market before it was finally sold.

One should also keep in mind that not every home will sell in the same figure region - even though it may be in the same neighborhood of a home that sold for above or below the average market price. This is because you need to take into account other, often overlooked factors such as the condition of the property, its exterior, the roof, the plumbing system, garden, swimming pool, security and features of the house which would set it apart from other houses in the area.

Location is the Key!

Estate Agents know that 'location' has always been one of the most influential factors that determine a properties selling price! Natural location settings such as areas that are close to the sea or properties built on hillsides, offering scenic views of the city or sea, usually have a much higher asking price, when compared to areas on the flats or in a valley.

Another influential factor would be the amenities and facilities in the area your home is situated in. A major draw card for buyers today is to purchase in an area which is close to schools, shopping centers or recreational parks - even if these areas are not close to the sea or the hills.

Your Neighbors Can Affect the Selling Price

As already mentioned, the area or location of your home is definitely a major influence in the final selling price of your property. However, even if your home is situated in a 'well perceived' location, it won't really matter that much if you happen to have lousy, noisy or unkempt neighbors!

Bad neighbors can easily bring your property value down or even bring the entire neighborhood into poor reputation. This can have a negative effect on the selling price of your property. That is, even if your property is secure, tidy and well-kept. Unfortunately, this factor is not in the hands of you, the seller and because of this, you may find that your home's market value and asking price is significantly lower than other houses in the same area.

The good news however, is that this is just one of many factors that influence the final selling price, so it is always a good idea to focus on the other positive areas of your home and try to draw attention away from any potentially bad neighbors.

The Initial Asking Price

Determining the correct selling price for your home from the beginning is critical in getting it sold! If your asking price is initially set too high, compared with other properties in the area, it may take months or even years to get it sold. This in turn could lead to the property becoming stale, buyers start to lose interest and questions may arise, such as why it has been so long on the market.

On the other hand, if your asking price is set too low in comparison to the current market value, it may leave questions in the buyer's minds, such as if there are perhaps any problems with the property.

To get the most accurate evaluation of your home, it is highly recommended to obtain the skills of a qualified estate agent for professional property advice and consultation in determining the best possible selling price for your home.

Related Article: Guide To Renting in South Africa.


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