Overpricing by some sellers at the top end of the property market has reached ludicrous levels, says Lanice Steward, MD of Anne Porter Properties.
"We have seen owners trying to get R2 million more than their property's market value and we have had to be quite tough in getting certain sellers to accept reality," said Steward. "A Hermanus home with which we are not currently involved was priced by one agent at R12m and was valued by another at R30m - when the market related price is almost certainly around R15m."
Regrettably, she added, some less experienced agents have sometimes gone along with these out-of-touch sellers in order to secure mandates and this has skewed the market perception of the homes concerned. "There has always been a tendency for sellers to hear what they want to hear, but overpricing should be avoided at all costs because - and this is a proven fact - an overpriced home will all too often stick on the market and will then pick up a bad name," said Steward.
"If it has been on sale for more than three months, prospective buyers will ask, 'What am I missing that others have noticed?' - and they will then put in a too-low offer. In short, overpricing leads to the house eventually selling below its true market value." Steward said that at Anne Porter Properties agents are trained to identify those sellers who are not really serious but are "giving it a go in the hope of getting a ridiculous profit". If attempts at overpricing are now perhaps the most common mistake in the Cape residential market, what is the second most serious error? "A lack of effort in preparing the home for sale," says Steward.
"Buyers will always react well to a feeling that a home has been cared for and loved. It is, therefore, worthwhile to spend money on a repaint, a complete cleaning of the carpets, replacement of damaged tiles and similar matters. The money paid out will be repaid handsomely in the sales price - but there are sellers too lazy or too impoverished to undertake this work."
Contact Steward on 021 671 9120.This article was originally published on page 9 of The Cape Argus on May 29, 2004
Publisher: The Argus
Source: The Argus
Overpricing hits the residential market in the Western Cape
Posted On Friday, 28 May 2004 02:00 Published by eProperty News
Overpricing by some sellers at the top end of the property market has reached ludicrous levels
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