If you are thinking of selling your home, then one of your biggest concerns will undoubtedly be to find out how much your property is worth. It is very important that sellers set the correct asking price when placing their home on the market as buyers, who are looking at properties to purchase are educated and know what they can buy within their price range.
“The price of your home will get influenced by what is happening on the political and economic stage of the country, the area as well as the surrounding suburbs. The condition and upkeep of your property, is one of the biggest factors which result in home owners losing money, when the opportunity for sale presents itself” informed Craig Hutchison, CEO of Engel & Völkers Southern Africa. Many sellers have inflated beliefs that their house is worth more than what they paid for the property, especially if they have had additional cost on improvements. It is essential that sellers view their home as objectively as possible.
It’s always best to consult a professional estate agent, who will be able to provide sellers with an estimated market value of their home by conducting a Comparative Market Analysis (CMA). They will base their evaluation on statistics and facts and remain objective. This analysis will incorporate the strength of the local market, demand and supply forces, and the sale of other similar properties in the local area. Agents have access to advanced industry developed tools to assist them with this process. The CMA will help to determine how much people are willing to pay for a particular type of property, and this will assist the seller in making an educated decision when it comes to their asking price.
Determining your property sales price in 4 simple steps
Step 1: Get informed
Understand what determines the market value of a home
Your property value will be determined on several different factors. While location is undoubtedly the most important, house prices will also depend on layout, condition, size, future developments, and desirable features. Details like a newly renovated kitchen or manicured lawn will add to your property’s value. Yet house prices are constantly shifting, which means that the property could be valued at a very different price today than what you originally paid for it, or even what it was worth one month ago. It’s essential to understand your property’s current market value in order to present buyers with a focused marketing strategy; otherwise you may run the risk of selling below value.
Step 2: Asks the experts
Obtain an expert valuation
While you can glean data from comparable recent property sales in your area, it’s highly recommended to obtain a professional valuation. The housing market changes daily, so it’s advisable to gain access to the latest sales trends in order to achieve a desirable house price. “At Engel & Völkers, our expert real estate agents have the most current, targeted sales data in each location at their fingertips. Our comprehensive, widespread sales network is able to provide local knowledge, ensuring that you’ll receive a realistic, accurate property value to work with” noted Craig.
Step 3: Do the math & plan
Use your valuation to set a realistic sales price
Your property value report is more than just a number. You can use this figure as a starting point for potential remodelling before putting the house on the market. There are a number of ways to boost your home’s market value, chief among them being a loft conversion which can add an average 12.5% to your selling price. In many cases, simple home repairs and a fresh, neutral slick of paint will create a small increase in value. Your agent can best advise you regarding how to proceed. Refer to the ROI on renovations guide for more in-depth information on which renovations are best to consider.
Step 4: Go to Market
Market your property with value in mind
Qualified real estate agents can optimise the marketing and sales process by using market value as a guide. When consulting our agents, you can choose from a classic sale with public marketing efforts used to secure maximum coverage, or a discrete sale where we market directly to prestige buyers. In either case, we use the market value of a home to craft premium printed materials as well as online advertisements, and reach out to the target buyer demographic at the ideal price point.
Are you ready to sell your property? Get in touch with a team of real estate experts and obtain a professional valuation for your home.