Consumer Information

Author: Jawitz Properties
28 October 2020

The question of the asking price

If you were to put an asking price on a home that you have lived in and loved based on sentimental value, it would invariably be priceless. However, a strong sense of objectivity, as well as pertinent facts, must form the basis of the asking price for which you put your property on the market. Trusting your Jawitz #RealPartner to determine the correct asking price for your property is one of the most important steps in selling your home. This price is established by various factors, such as location, prevailing market conditions, the size of your home, the number of rooms you have and whether or not the property needs some TLC.

The importance of the right asking price

Establishing the correct price for your property is the first – and probably most crucial – step to finding a buyer for your property. While pricing a property too low means losing value, pricing it too high can lead to the property sitting on the market for far longer than it should. When people who are browsing the listings for their next home see a property that has been listed for too long, they can often assume that there is something wrong with it, leading to your property being overlooked by many possible buyers.

Comparative Market Analysis

One of the greatest tools in a Jawitz real partner’s arsenal when determining the correct asking price for your property is a comparative market analysis (CMA). A CMA compares your property to other properties that have been sold in your suburb in recent months, taking into consideration the age, size and style of your home, as well as features. Armed with a CMA, as well as an understanding of prevailing conditions, your Jawitz real partner will be able to pinpoint a realistic price for your home.

Let’s talk location

As much as things have changed in 2020, the old real estate adage remains true. The value of a property is all about “location, location, location.” The reason for this is that the location of a property is the only thing about it that can never be changed or upgraded. An accurate asking price for your home is likely to be higher if your area receives good service delivery and lies within a short distance of various amenities such as shopping centres, schools and medical facilities.

The relevance of the repo rate

The repo rate is set by the Reserve Bank and determines the prime lending rate set by the banks. As the lending rate increases, it becomes more difficult for would-be buyers to qualify for a home loan. This means that there is less demand for property. Thanks to the principle of supply and demand, less demand for property means lower asking prices for properties going onto the market. Since 2020 has seen a series of interest rate cuts, the market is currently favouring buyers, and accurate asking prices are lower than they would have been had it not been for the outbreak of COVID-19.

What your home has to offer

The size of your home and the finishes that it has will have a huge impact on the correct asking price. Generally speaking, a four-bedroom, three-bathroom house will sell for more than a three-bedroom, two-bathroom house in the same area. However, if the four-bedroom house needs some TLC and the three-bedroom house has ultramodern finishes, then the three-bedroom may fetch a higher asking price. The age and condition of kitchen and bathroom fixtures are key criteria in determining the correct asking price, as is the condition of the garden and security features.

Whether you are thinking of selling or your home is currently on the market – speak to a #RealPartner about price and be assured of our commitment to superior cutting-edge service, and to being open and transparent with you while determining a fair and realistic price for your home. Book your free digital valuation or contact us to determine the right asking price for your property.

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